Regulators in Brussels are expected to greenlight Paramount’s $111 billion acquisition of Warner Bros. Discovery following approval earlier this month by the U.S. Department of Justice’s Antitrust Division, the Financial Times reported.
Citing two sources familiar with the discussions, the FT reported that the European Commission is still finalizing the final details of approving the mega-merger, which would include Paramount CEO David Ellison “accepting certain remedies” aimed at “addressing competition concerns.”
One condition could be that “Paramount exits its joint venture with Universal Pictures to distribute films in multiple international markets,” the report added, warning that “no final decision has yet been made.”
After the FT’s report opened on the New York Stock Exchange, Warner Bros.’s stock price rose about 1%.
The mega deal, signed in February after a long battle with Netflix, brings together Paramount properties including CBS, CBS News, Paramount Pictures and Paramount+, along with WBD’s HBO and HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, HGTV and more.
The European Commission review is one of the last major regulatory hurdles Mr. Ellison must face in building a global giant. The deal is also undergoing regulatory review in the UK.
Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s Rimad Holding Company and Qatar Investment Authority (QIA) are jointly investing $24 billion in the Hollywood mega-merger. But that doesn’t seem to be a problem for the EU.
The European Commission has until July 7 to either approve the deal or launch a detailed investigation.
A Paramount spokesperson said the company does not comment “on ongoing regulatory proceedings.” There was no comment from the European Commission.
