Paramount wins EU approval for $81 billion Warner Bros. deal

Paramount’s $81 billion bid to buy Warner Bros. Discovery was approved by the European Union on Wednesday after the companies offered concessions related to film distribution in Europe.

The European Commission, the EU’s executive arm, said its approval was conditional “upon full compliance with the commitments offered by Paramount.”

In order to ease regulators’ concerns, Paramount offered commitments including that it would terminate its stake in United International Pictures, its film distribution joint venture with Universal Pictures, in the European Economic Area within 13 months from the deal’s closing.

The company also said it wouldn’t enter into any deal for 10 years with Universal Pictures parent NBCUniversal to jointly co-distribute films in the European Economic Area, which covers EU member states and three other European countries. It also offered other commitments related to theatrical distribution in the region.

The media and entertainment merger still must clear other hurdles.

In the U.K., Culture Secretary Lisa Nandy wrote to the companies in June saying she is “minded to intervene” on their deal on public-interest grounds.

The U.S.’s Justice Department closed an investigation into the planned deal in June without challenging the transaction or demanding concessions. The companies now face an antitrust lawsuit from a dozen states including California and New York. A California federal judge granted a 14-day restraining order on Monday that prohibits the companies from closing the deal.

The EU said in its decision that enough studios remain as competitors in film production in the region. It said its main concerns were with film distribution, which were addressed by Paramount’s commitments.

The deal is valued at $110 billion including debt.

The transaction, once closed, would put two of Hollywood’s oldest movie studios under one corporate roof, as well as subscription streaming services Paramount+ and HBO Max and several television networks.

Write to Edith Hancock at [email protected] and Kim Mackrael at [email protected]