Paramount Skydance achieved a positive development in its attempt to acquire Warner Bros. Discovery for $111 billion.
The European Commission approved David Ellison’s major tech merger on Wednesday, clearing the way for it to proceed throughout the European Union.
European regulators approved the Paramount-Warner merger with only one requirement: Paramount had to dissolve its movie distribution partnership with Universal Pictures in Europe. They determined that even after the merger, enough other studios would still be making films, ensuring healthy competition.
As a film buff, I was reading the latest from the European Commission, and they’ve basically said there’s still plenty of competition among film studios. They pointed out that alongside the big players like Disney, NBC Universal, and Sony, there are also a lot of smaller but important studios in the mix – both from the US like Amazon MGM, A24, and Lionsgate, and from Europe too. So, they don’t seem too worried about a lack of competition in movie production right now.
The commission expressed concern that combining these companies would dominate film distribution. As a result, Paramount has one year to dissolve its partnership with Universal – United International Pictures – which handles movie delivery to European cinemas. The commission believes adding Warner Bros. to the mix would create an unfairly powerful entity.
For the next ten years, Paramount is prohibited from making any deals – whether directly or through another party – with Universal to share film distribution responsibilities in Europe, according to the commission’s ruling.
Paramount won’t have to sell Cartoon Network, even though some people worried it would create a monopoly in kids’ TV. This is despite Paramount already owning Nickelodeon.
The agency stated that streaming services with content for kids will still provide competition for the combined TV channels.
Paramount and Warner Bros. Discovery joining forces will build a more financially stable and creatively focused media company, better equipped to compete with industry leaders like Netflix for viewers, high-quality shows and movies, and top talent, according to Paramount.
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A judge has temporarily blocked the agreement following a request from a group of twelve state attorneys general. The coalition is headed by California Attorney General Rob Bonta.
The European Commission gave its approval just two days after Ellison’s company faced a major challenge.
Well, things just got interesting in the Paramount acquisition drama. A federal judge in Oakland has temporarily blocked the deal from going through for at least two weeks, and it all stems from a lawsuit filed by 12 state attorneys general, spearheaded by California’s Rob Bonta. Their argument? This merger could run afoul of antitrust laws, potentially creating a monopoly. It’s a significant legal hurdle for Paramount right now, and I’ll be watching closely to see how this plays out.
Judge Araceli Martínez-Olguín has set a hearing for August 3rd to decide if the recent pause should be extended. The states involved will likely ask the court to block the deal completely, potentially delaying Paramount’s merger by several months.
The debate surrounding this issue is far from settled, and the situation in the U.S. differs significantly from Europe, according to Alvaro Bedoya, a former FTC member now advising the American Economic Liberties Project. He made this comment in a statement on Wednesday.
Regulators in Europe, Australia, Brazil, Canada, China, Saudi Arabia, Serbia, and South Africa have all determined that the deal won’t harm competition in their respective markets. However, Britain’s Competition and Markets Authority is still looking into how the merger might affect things there.
Paramount received approval from the U.S. Justice Department last month for its plan to buy Warner Bros., the company behind popular franchises like HBO, CNN, Batman, Superman, Harry Potter, and Scooby-Doo. Paramount was aiming to finalize the deal by the end of September to avoid having to pay Warner Bros. Discovery shareholders extra money.
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After Netflix finalized the purchase of Warner Bros., the Ellisons and their colleagues immediately started planning how to regain their position.
Earlier this year, Paramount made an offer to buy shares in Warner Bros., offering $31 per share as a sign they believed the deal would be successful.
Paramount will also pay 25 cents per share each quarter after September 30th for any delays in completing the deal – which could add almost $7 million to the daily cost of acquiring Warner Bros. Discovery. Paramount won the bid over Netflix, who dropped out in late February after Paramount increased its offer.
Larry Ellison, who co-founded the tech company Oracle, is financially supporting his son’s efforts to buy another large entertainment company. Just last August, the Ellison family already purchased Paramount.
Last week, the Writers Guild of America (WGA) filed an antitrust lawsuit against Paramount, claiming that the planned merger with another major studio could result in job losses and reduced wages for writers. They’re also asking the court to block the deal from happening.
It seems like both sides are gaining ground. Democratic state attorneys general felt positive about the recent ruling from Martínez-Olguín.
The lawsuit claims that Paramount’s planned acquisition – the biggest deal in Hollywood for many years – breaks U.S. antitrust laws. These laws, dating back over a hundred years, are designed to stop mergers that reduce competition and lead to higher prices for customers.
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Securing a restraining order will be a key challenge for California Attorney General Rob Bonta and his team. Many believe the state’s case faces difficulties, especially since the U.S. Justice Department recently gave the merger its approval.
In the order approving the states’ request to temporarily halt the deal, Judge Martínez-Olguín explained that allowing it to move forward would make it very hard, if not impossible, to reverse. This is because the companies would likely combine operations, share confidential business data, and potentially lose or reassign employees.
If Paramount doesn’t complete its deal by next summer, it could owe Warner Bros. around $7 billion.
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This weekend, President Trump warned Netflix that they would face repercussions if they didn’t remove Susan Rice from their board of directors.
Paramount is currently the smallest among the big players in media, and buying Warner Bros. is essential for David Ellison’s plan to create a major entertainment empire.
2026-07-22 22:02