EU conditionally approves Paramount Skydance's $110B Warner Bros. Discovery takeover

The European Union on Wednesday conditionally approved Paramount Skydance’s $110 billion (€94 billion) takeover of Warner Bros. Discovery.

Citing concerns over the deal's impact on film distribution in Europe, Brussels said Paramount must terminate its stake in United International Pictures, a joint venture with Universal, in the European Economic Area (EEA), which includes the EU's 27 member states.

European regulators said Paramount must not, for 10 years, directly or indirectly enter into any agreement with Universal to jointly distribute films in the European Economic Area (EEA).

"These commitments fully address the competition concerns identified by the (European) Commission by ensuring that the films of the merged entity will not be distributed jointly with those of Universal or Disney," the EU said.

"Under the supervision of the commission, an independent trustee will monitor their implementation," it added.

The EU said the deal was unlikely to harm competition in film production, citing the presence of major competitors such as Disney, smaller US studios including Amazon MGM, and European film producers.

The deal still faces legal hurdles in the United States after a federal judge in California temporarily paused the merger this week.

A hearing on a preliminary injunction is scheduled for 3 August, which could prevent the transaction from closing before a final ruling.

The planned merger has sparked significant opposition, with critics warning it could fundamentally reshape Hollywood.

If completed, it would reduce the number of major US film studios to four. Opponents argue the deal could lead to widespread job cuts, fewer films being produced and released, and less competition across the industry.