European regulators have approved Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery, subject to commitments intended to address competition concerns surrounding theatrical film distribution, according to the BBC.
The European Commission granted clearance after Paramount agreed to terminate a major European film distribution partnership with Universal Pictures within 13 months. Paramount also agreed not to establish a similar arrangement for 10 years.
Regulators were concerned that the partnership could give the combined Paramount and Warner Bros Discovery business excessive influence over the distribution and release of films in European cinemas.
The approval removes a significant regulatory obstacle in Europe, but the transaction remains paused in the United States because of a lawsuit filed by a coalition of 12 states.
The U.S. Department of Justice indicated in June 2026 that it supported the merger. However, the states subsequently sued to block the transaction, arguing that the combination would reduce competition and harm movie theaters, cable television distributors and consumers.
U.S. District Judge Araceli Martínez-Olguín issued a temporary order pausing the acquisition while the court considers the states’ claims. The order does not determine whether the transaction can ultimately proceed.
The legal challenge focuses partly on the combined company’s potential control over theatrical releases. A court decision could affect the transaction’s timetable or require additional concessions before closing.
The delay could result in significant additional costs. If the acquisition is not completed by September 30, 2026, Paramount must pay Warner Bros Discovery shareholders a ticking fee of approximately $7 million for each additional day before closing.
A ticking fee is an escalating payment designed to compensate a target company’s shareholders when an agreed transaction remains uncompleted beyond a specified date.
The Writers Guild of America also opposes the acquisition. The union has argued that combining the two media companies could reduce employment opportunities and give the resulting organization greater leverage over writers’ compensation.
Regulators in the United Kingdom are separately considering whether to intervene. Their review includes concerns involving local news, children’s programming and competition in the streaming market.
Paramount maintains that the transaction will benefit audiences and has committed to releasing at least 30 movies in theaters annually, approximately double its current output.
The acquisition cannot close while the U.S. court order remains in place. Completion will depend on the outcome of the states’ lawsuit, any additional regulatory requirements and the satisfaction of the transaction’s remaining closing conditions.
