Paramount will exit its United International Pictures distribution joint venture with Universal as a condition of EU approval of its $111 billion acquisition of Warner Bros. Discovery.
The move follows a request made by the European Commission’s antitrust watchdog last week to Paramount to exit the business. The European Commission announced on Wednesday that a regulatory filing confirming Paramount Skydance’s commitment to withdraw from UIP has been submitted, adding that a “new interim deadline” for the European Commission to reach a decision on approval of the megamerger has been extended from July 7 to July 22.
Founded in 1981 and based in London, UIP has since downsized and now operates as an agent in several parts of Europe, including Denmark, Greece, Croatia, Hungary, Norway, Poland and Sweden.
“We can confirm that we have submitted a remedy to the European Commission today,” a Paramount spokesperson said in a statement to Variety.
“We have been working constructively with the European Commission for eight months and are confident that this remedy directly and comprehensively addresses all the concerns expressed in the Commission’s preliminary assessment and supports the path to timely authorization,” the statement added. “We look forward to continuing to work constructively with the European Commission and all remaining regulatory authorities as they progress through the review process of this pro-competition transaction.”
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. Lisa Nandy, Britain’s secretary of state for culture, media and sport, said the deal was also subject to regulatory review in Britain and that the British government was likely to intervene. On Tuesday, he expressed concern that there are “enough people” controlling the British media. In the UK, the merger will bring British Broadcaster 5 and TNT Sports under the same ownership, along with streamer Paramount+ and the recently launched HBO Max.
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 or the UK
