European Commission Clears Paramount Skydance Acquisition of Warner Bros. Discovery

The European Commission's approval follows similar clearances from over 65 jurisdictions, including the United States, China, and Australia, marking a critical step toward closing the transaction.
European regulators determined that the combined entity will still face sufficient competition from major studios like Disney and Sony, as well as smaller players like Amazon MGM and Lionsgate.
A U.S. judge recently issued a temporary restraining order pausing the deal in response to a lawsuit filed by attorneys general from 12 states seeking to block the merger.
Market analysts suggest the deal faces high risks of shareholder value destruction due to its large size and significant debt financing, historically common in major media M&A.

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“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.”— Makan Delrahim, Chief Legal Officer, Paramount

“at film production level, enough film studios remain as competitors in the EEA”— European Commission

“The large deal size ... and heavy long-term debt borrowing ... point to a negative prospect”— Feng Gu, professor of accounting and law at the University at Buffalo School of Management

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