Paramount Skydance has submitted remedies to the European Commission in a bid to secure regulatory approval for its $110 billion acquisition of Warner Bros. Discovery. Among the concessions, according to multiple reports, is a commitment by Paramount to exit United International Pictures (UIP), its decades-old film distribution joint venture with Universal. The filing prompted the European Commission to extend its Phase 1 review deadline from July 7 to July 22.
The deal, which would unite two of Hollywood's most storied studios under CEO David Ellison, has now cleared regulators in nine countries and regions. The U.S. Department of Justice approved the merger earlier this year. Still pending: the European Commission's final decision by July 22, a U.K. Competition and Markets Authority Phase 1 ruling due by August 7, and a separate EU foreign investment review expected by July 14.
Paramount's agreement to exit UIP is among the most concrete structural concessions offered to date. UIP has long served as the primary theatrical distribution vehicle for Paramount and Universal across multiple international markets. Exiting the venture would reduce the combined company's distribution footprint in Europe, addressing what regulators appear to view as a concentration concern.
"We look forward to continuing to work constructively with the European Commission and all remaining regulatory agencies as they advance their review process," Paramount said, calling the transaction a "procompetitive" one.
For David Zaslav, who would depart as CEO of Warner Bros. Discovery upon closing, the deal marks the end of a years-long repositioning of the company. Ellison, who built Skydance into a franchise-level production entity across Mission: Impossible and Top Gun before absorbing Paramount Global last year, would lead the combined studio. A $7 billion termination fee is triggered if the deal collapses on regulatory grounds. The companies are targeting a Q3 2026 close.