Paramount’s $111 billion Warner deal wins EU antitrust approval
The European Commission cleared Paramount’s Warner Bros. Discovery takeover as the deal faces a 14-day pause in the U.S.
By Georgia Hale · Staff Writer
3 min read
Paramount’s $111 billion plan to buy Warner Bros. Discovery has cleared a major European hurdle, with the European Commission approving the deal, according to Deadline.
The decision from the European Union’s antitrust authority gives Paramount a key win as CEO David Ellison works to push the takeover through other challenges. Deadline reported that the company is still facing legal action in the United States and regulatory uncertainty in the UK.
The European approval did not come without conditions. According to Deadline, Paramount agreed to remedies in order to secure clearance from the Commission, including a commitment to leave its international distribution arrangement with Universal Pictures.
Europe clears the media tie-up
The proposed takeover would bring Paramount and Warner Bros. Discovery under one corporate roof in one of the largest media deals currently moving through regulators. Deadline described the transaction as a $111 billion acquisition.
The European Commission’s green light means one of the world’s most closely watched antitrust bodies has allowed the merger to proceed on its side of the process. The report did not detail any additional remedies beyond Paramount’s planned exit from the Universal Pictures distribution deal.
The approval is a notable step for Ellison, but it does not mean the merger is free to close. The deal remains under pressure in the U.S., where a federal court has temporarily stopped it from moving ahead.
U.S. judge hits pause
On Monday, a federal judge granted a temporary restraining order that pauses the Paramount-Warner merger for 14 days, according to Deadline.
The order followed a lawsuit filed by California Attorney General Rob Bonta and 11 other states. The states claim the proposed merger violates antitrust laws, Deadline reported.
The allegations have not been decided in court. The temporary restraining order keeps the deal on hold for the limited 14-day period while the legal fight continues.
Deadline did not report a fresh response from Paramount to the restraining order in its account of the European approval. It did report that the company has been dealing with U.S. legal challenges while seeking regulatory clearances elsewhere.
A costly clock is running
The calendar matters for Paramount. According to Deadline, the company has a “ticking fee” commitment to Warner Bros. Discovery shareholders if the takeover does not close on time.
That commitment is 25 cents per share, which Deadline said amounts to roughly $650 million, for every quarter the deal fails to finalize after September 30.
The European Commission’s approval removes one major obstacle, but the takeover still faces the U.S. pause and unresolved questions in the UK. For Paramount and Warner Bros. Discovery, the next phase is a race between regulators, courts and the deal clock.
This story draws on original reporting from Deadline.