European Commission Approves Paramount-Warner Bros. Merger 39 minutes ago After Judge Halts Paramount-Warner Bros. Merger, WGA Also Seeks Injunction to Block Deal’s Closing 4 hours ago Judge Pauses Paramount-Warner Bros.
Merger 2 days ago The European Commission approved the merger of Paramount Skydance and Warner Bros. Discovery on Wednesday, removing one of the few remaining obstacles to closing the $111 billion deal. As a condition of the approval, Paramount has already agreed to cancel its film distribution partnership with Universal in Europe within the next 13 months.
A federal judge in Oakland, Calif., on Monday temporarily halted the merger, pending a hearing on a preliminary injunction sought by 12 states including California and New York. The states argue that the deal will consolidate two of the top three basic cable programmers in the U.S. and two of the top film film distributors, leading to higher prices and less output.
Popular on Variety Related Stories Whitmer Thomas Sings, Skates and Does Stand-Up in Trailer for HBO Comedy Special 'Terminal Crew of Dudes' (EXCLUSIVE) Fox Entertainment Exec Says AI Should ‘Support Human Creativity' as Studio Joins ARIAM Content Coalition The European Commission conducted a similar investigation of the impacts in the European Union, finding that the deal will not harm competition in TV or film production, as enough global and local competitors will remain. The commission’s investigators did flag that the film distribution market would become overly concentrated due to Paramount’s longstanding joint venture with Universal, which goes under the name United International Pictures. Paramount met with European regulators and agreed to exit the partnership, and not to enter into a similar arrangement for at least a decade.
“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,” the commission said in a statement. The United Kingdom is still considering whether to intervene in the deal. Paramount has already received approvals from some 20 other countries, including Australia and China, as well as the U.S.
Department of Justice. In addition to the state coalition, the Writers Guild of America has also sued to block the merger, arguing that it will limit pay and creative opportunities for film and TV writers. Paramount chief legal officer Makan Delrahim said in a statement, “Today’s approval from the European Commission marks another significant milestone in bringing Paramount and Warner Bros.
Discovery together. We appreciate the Commission’s constructive engagement and thorough analysis throughout its review.” Delrahim added, “Not only does this combination not pose any competitive harms, it actually enhances competition by creating a scaled media and entertainment company with the ability to truly challenge the tech platforms that have come to dominate the industry. By strengthening competition it will support increased investment in content, expand opportunities for creatives and deliver greater choice for consumers.” John Oliver’s Soap Opera Surprise: A ‘Days of Our Lives’ Guest-Star Role
