Paramount Skydance Corp. (NASDAQ:PSKY) has secured European Union antitrust approval for its $110 billion acquisition of Warner Bros. Discovery (NASDAQ:WBD) after agreeing to end its film distribution joint venture with Universal Pictures.
On Wednesday, the European Commission said Paramount’s commitment to dissolve the United International Pictures joint venture in Europe within 13 months of closing the deal resolves its competition concerns.
The company will avoid film distribution agreements with Universal in Europe for 10 years and will not shift Warner’s theatrical film distribution to its own distributor, according to the European Commission.
“These commitments fully address the competition concerns identified by the Commission by ensuring that the films of the merged entity will not be distributed jointly with those of Universal or Disney,” it added, referring to the Walt Disney Company (NYSE:DIS).
Paramount said the European Commission’s approval means 65 jurisdictions have now either cleared the transaction or opted not to oppose it over competition or foreign investment concerns.
Notably, the Competition Protection Agency of Kuwait, the Austrian Federal Competition Authority, and the Australian government have unconditionally approved the merger earlier this month.
Merger Blocked Amid Lawsuit Claims
The relief comes as Paramount faces a setback at home. On Monday, a U.S. judge temporarily blocked a major media merger after 12 states filed a lawsuit challenging the deal over antitrust concerns. The merger would combine ownership of multiple movie studios, TV networks, and streaming platforms HBO Max and Paramount+.
California Attorney General Rob Bonta called the ruling a key victory, arguing the deal could reduce competition, limit opportunities, and harm consumers.
A Paramount Skydance shareholder, Paul Robbins, has filed a lawsuit alleging misconduct linked to the company’s 2025 acquisition. The lawsuit names David and Larry Ellison and several Paramount Skydance board members as defendants, while President Donald Trump is not a defendant but is identified as an alleged beneficiary of the claimed illegal activity.
The lawsuit alleges that the Ellisons had a side deal with Trump to "improperly funnel cash" to him to resolve legal claims and promised to remove CNN anchors disliked by the president after completing the acquisition.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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