EU clears $110bn Paramount and Warner Bros merger, but it remains on hold in US
Summary
European regulators have approved Paramount Skydance's $110 billion plan to buy Warner Bros Discovery after Paramount agreed to end a key film distribution deal in Europe. However, the merger is still delayed in the United States because a group of states has filed a lawsuit to stop it, and a judge has paused the deal while the case is reviewed.Key Facts
- The European Commission approved the $110 billion merger after Paramount agreed to end its European film distribution deal with Universal Pictures within 13 months.
- Paramount cannot start a similar distribution partnership in Europe for 10 years to avoid too much market control.
- In the US, a coalition of 12 states sued to block the merger, saying it would harm movie theaters, cable companies, and audiences.
- A US judge temporarily paused the merger to consider the lawsuit’s claims.
- If the deal does not close by September 30, Paramount must pay Warner Bros $7 million every day as a penalty.
- The Writers Guild of America opposes the merger, fearing it will reduce jobs and lower writers’ pay.
- UK regulators are also reviewing the deal for possible effects on local news, children’s TV, and streaming competition.
- Paramount promises to release at least 30 movies in theaters yearly after the merger, double its current output.
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