EU clears £80bn Paramount-Warner merger as global hurdles remain
European regulators have conditionally approved the £80bn Paramount-Warner merger, though the deal's future hinges on mounting legal and political challenges abroad.
Paramount Skydance’s £80bn takeover of Warner Brothers has won conditional approval from the European Union, clearing a significant regulatory hurdle for the creation of a transatlantic media giant. The European Commission concluded that concessions offered by Paramount adequately address antitrust concerns surrounding the combination.
To secure Brussels’ blessing, Paramount agreed to unwind a film distribution joint venture with Universal Pictures within 13 months of the deal closing. Regulators also imposed a decade-long ban on the merged entity striking co-distribution agreements with Universal in the European Economic Area.
The merger, which Paramount secured in February after outbidding Netflix, would unite major assets including Warner Brothers Pictures, HBO Max, TNT Sports, and CNN. However, the EU green light does not guarantee the transaction will close.
In the United States, a court recently ordered a pause on the deal despite clearance from the Department of Justice. A coalition of 12 states led by California argues the merger would irreparably harm market competition, with a hearing on a preliminary injunction scheduled for 3 August.
The transaction has also drawn political attention, with US president Donald Trump expressing interest in the fate of CNN. Paramount CEO David Ellison, the son of Oracle co-founder and Trump ally Larry Ellison, is steering the acquisition. Delays carry steep financial penalties, as Paramount becomes liable to pay Warner Brothers shareholders about £5m for each day the merger is pushed past 30 September.
Across the Channel, the deal faces another potential block. UK culture secretary Lisa Nandy last month signaled she is prepared to intervene over the merger’s impact on news, children’s television, and streaming services.
The combined regulatory scrutiny from multiple jurisdictions, alongside a separate lawsuit from the Writers Guild of America claiming the deal threatens writers’ livelihoods, leaves the ultimate fate of the £80bn combination deeply uncertain.
