The European Commission approved Paramount Skydance Corporation's acquisition of Warner Bros. Discovery on July 22, marking the sixty-fifth jurisdiction to clear the $81 billion deal. The greenlight came with a condition: Paramount must divest its stake in United International Pictures, the joint venture it operates with Universal for European film distribution, within 13 months of the deal closing. Paramount is also barred from entering any similar distribution arrangement with Universal for a decade.
"These commitments fully address the competition concerns identified by the commission," the EC stated. The regulatory body had flagged the risk of market concentration in European theatrical distribution but concluded that sufficient alternatives exist across the European Economic Area.
The EU clearance arrives in direct tension with the deal's American legal status. A California federal judge issued a 14-day temporary restraining order on July 21, blocking any closing while the court weighs antitrust claims from California and 11 other states. A preliminary injunction hearing is scheduled for August 3. The coalition argues the merger would extinguish competition in theatrical film distribution and basic cable programming markets.
The financial stakes are mounting. Paramount faces a September 30 closing deadline. After that date, the company owes Warner Bros. Discovery shareholders approximately $7 million per day in compensation. Chief Legal Officer Makan Delrahim stated the combination "not only does not pose any competitive harms, it actually enhances competition."
One jurisdiction still outstanding: the United Kingdom, which has conducted its own regulatory review independently since Brexit. A Competition and Markets Authority ruling is pending. If the August 3 hearing goes against Paramount, the September 30 deadline starts to look precarious.