Paramount Skydance offers EU remedies to keep Warner deal on track

MUMBAI: The biggest blockbuster of the year may still need a few edits before it gets the green light. Paramount Skydance has submitted a package of remedies to the European Union in a bid to ease competition concerns over its proposed $110 billion acquisition of Warner Bros Discovery, as the media giant seeks to keep one of the industry’s biggest mergers on schedule.

In a regulatory filing released on Wednesday, the company said its proposed commitments directly address issues raised by the European Commission during its preliminary assessment and should help secure regulatory approval.

The Commission has not disclosed the details of the remedies, in line with its usual practice, but has extended its decision deadline from 7 July to 22 July to allow additional time to evaluate the proposals.

According to earlier reports, one of the key concessions could see Paramount exit its long-standing film distribution joint venture with Universal Pictures, a move intended to address concerns from European cinema operators over market competition.

While the transaction has already secured clearance from the US Department of Justice, regulatory challenges continue to mount elsewhere. Reports indicate that California, New York and several other US states are preparing legal action aimed at blocking the acquisition.

The proposed merger is also attracting heightened scrutiny in the United Kingdom. Earlier this week, UK Culture Secretary Lisa Nandy said the government was considering intervention over concerns that the combined company’s ownership could affect media plurality across news, children’s television and streaming services.

Nandy has given Paramount and Warner Bros Discovery until 6 July to respond before deciding whether to issue a public interest intervention notice. Such a move would trigger formal reviews by Ofcom and the Competition and Markets Authority (CMA). Separately, the CMA is already conducting its own assessment and is expected to decide by 7 August whether the transaction warrants a more detailed investigation.

Despite the growing regulatory scrutiny, Paramount Skydance has maintained that the acquisition does not pose media plurality concerns in the UK and remains confident the deal will proceed within its planned timeline. As regulators on both sides of the Atlantic continue their reviews, the fate of the $110 billion media merger now hinges less on boardroom negotiations and more on satisfying competition watchdogs.