The European Commission has approved, under the EU Merger Regulation, the proposed acquisition by Paramount Skydance Corporation of Warner Bros. Discovery. The approval is conditional upon full compliance with commitments offered by Paramount. Both companies produce and distribute theatrical and audiovisual entertainment content, including films and television series.

The Commission examined the transaction in national and European Economic Area markets covering film production and distribution for cinema release, production and licensing of audiovisual content, wholesale television channels, and retail audiovisual services. It found that sufficient competitors would remain at the film-production level, including Disney, NBC Universal, Sony, Amazon MGM, A24, Lionsgate and European studios.

The Commission identified concerns at the film-distribution level in EEA countries where Paramount has a structural partnership with Universal through United International Pictures, or UIP. The partnership distributes Paramount’s and Universal’s films to cinema operators through their joint venture. The transaction would have added Warner’s films to UIP’s distribution activity and, without commitments, would have led to worse rental and distribution terms for cinema operators, ultimately disadvantaging consumers.

The investigation found that sufficient alternative competitors would remain across the audiovisual value chain. In the overlap involving pay television channels for children, streaming platforms offering children’s content would continue to constrain the merged entity’s television channels.

Commitments and oversight

  • Paramount will terminate its stake in UIP in the EEA within 13 months of closing the transaction.
  • For ten years, Paramount will not enter into an agreement or understanding with Universal to jointly co-distribute films in the EEA.
  • For ten years, Paramount will not shift Warner’s films to the theatrical distributor used by Paramount where that distributor also distributes Universal’s or Disney’s films in all UIP countries in the EEA.
  • In relevant UIP countries where Paramount and Universal do not share the same distributor, Paramount will not shift its films to Warner’s theatrical distributor where that distributor also distributes Universal’s or Disney’s films.

The Commission said the commitments ensure that films of the merged entity will not be distributed jointly with films of Universal or Disney. Following positive feedback in the market test, it concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision remains conditional on full compliance, and an independent trustee will monitor implementation under the Commission’s supervision.

The transaction was notified to the Commission on 2 June 2026. The Commission stated that Phase I merger cases generally allow 25 working days for a decision, with 10 additional working days when commitments are proposed, making 35 working days in this case. Further information is available in the public case register under case number M.12278.