Paramount Skydance’s £80bn Warner Brothers takeover gets EU conditional approval
11 reported
Paramount Skydance’s £80bn takeover of Warner Brothers moved closer to completion after receiving conditional approval from the European Union. The European Commission stated that Paramount’s offer to end a film distribution joint venture with Universal Pictures addressed competition concerns. As part of the commitments, Paramount has 13 months from the deal’s closing date to exit the venture. EU regulators also said Paramount must not enter any agreement with Universal to jointly co-distribute films in the European Economic Area for 10 years. Paramount signed the deal in February after beating Netflix in a bidding war. The combined company would control assets including CNN, Warner Brothers Pictures, TNT Sports, and HBO Max. The deal still faces challenges in the US, where a court ordered a pause after a California-led coalition of 12 states argued it would harm competition. A US hearing on a preliminary injunction is scheduled for 3 August.
What’s reported
Paramount Skydance’s £80bn takeover of Warner Brothers won conditional approval from the European Union.
The European Commission said Paramount’s offer to end a film distribution joint venture with Universal Pictures addressed competition concerns.
Paramount has 13 months from the deal’s closing date to pull out from the joint venture.
EU regulators said Paramount must not enter any agreement with Universal to jointly co-distribute films in the EEA for 10 years.
Paramount signed the deal in February after beating Netflix in a bidding war.
The combined company would control CNN, Warner Brothers Pictures, TNT Sports, and HBO Max.
A US court ordered a pause on the deal after a California-led coalition of 12 states argued it would irreparably harm competition.
A US hearing on a preliminary injunction is set for 3 August.
Paramount is liable to pay Warner Brothers shareholders about £5m for each day the merger is delayed past 30 September.
The Writers Guild of America has filed a lawsuit against the deal, saying it would jeopardise writers’ livelihoods.
The UK may intervene due to potential impact on news, children’s television, and streaming services, according to culture secretary Lisa Nandy.
Key figures
David Ellison, Paramount CEO, son of Oracle co-founder Larry Ellison
Lisa Nandy, UK culture secretary
Donald Trump, US president
Sources: The Guardian
