EU antitrust regulators clear Paramount-WBD merger
European Union antitrust regulators have approved the proposed merger between Paramount and Warner Bros. Discovery. The approval is contingent on Paramount divesting its stake in a film distribution joint venture to ensure fair market competition.
Why it matters
This is a significant regulatory milestone for a $110 billion media merger, allowing the companies to proceed toward consolidating their market position against major tech competitors.
European Union antitrust regulators said on Wednesday they had signed off on Paramount Skydance's proposed acquisition of Warner Bros. Discovery .
The approval, which included concessions made by Paramount, comes as the deal has been delayed in the U.S. due to concerns raised by state attorneys general.
In order to garner the approval, the European Commission, the executive body of the EU, said Paramount agreed to divest its stake in a film distribution joint venture with United International Pictures in Europe, and said it would not enter into any film distribution deal with Universal for the next 10 years in Europe.
"These commitments fully address the competition concerns identified by the Commission by ensuring that the films of the merged entity will not be distributed jointly with those Universal or Disney," according to the EU's release.
Paramount's stock was up about 2% in afternoon trading.
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