.png)
Topline
The European Union on Wednesday approved Paramount Skydance’s $110 billion takeover of Warner Bros. Discovery, clearing a major regulatory hurdle even as the deal faces pushback in the U.S. over concerns the agreement violates antitrust law.
A federal judge paused the merger, ruling states had raised “serious questions” about antitrust law.
NurPhoto via Getty Images
Key Facts
The European Commission said in a statement Paramount’s deal for Warner Bros. was approved after Paramount agreed to concessions that regulators said “fully address” competition concerns.
Paramount agreed to divest its stake in a film distribution joint venture with United International Pictures in Europe and not enter any film distribution deal with Universal Pictures in Europe for the next 10 years, according to the European Commission.
Clearance in Europe marks a regulatory milestone for the transaction to be completed, with further approval required from regulators in the U.S. and the U.K., whose Competition and Markets Authority said it would conclude a preliminary antitrust probe by Aug. 7.
what to watch for
Judge Araceli Martinez-Olguin, who temporarily blocked Paramount’s merger on Monday after ruling states raised “serious questions” about whether the takeover violated antitrust law, scheduled a hearing for Aug. 3. Martinez-Olguin may issue a more lasting order that could further pause the deal, potentially keeping the merger on hold indefinitely as litigation moves forward.
big number
$7 million. That’s how much Paramount agreed to pay each day if its deal for Warner Bros. fails to close by Sept. 30, amounting to about $650 million per quarter. Paramount would also pay a $7 billion termination fee if the deal falls through because of regulatory issues.
This is a developing story.
English (US) ·