The European Commission has approved Paramount Skydance Corporation’s proposed acquisition of Warner Bros. Discovery, subject to conditions on how films are distributed in parts of Europe.
Paramount and Warner both produce and distribute films and other audiovisual content such as television series, and compete with other studios and streaming services across Europe, the Commission noted in a statement on Wednesday.
The Commission examined the deal’s impact on markets including the production and distribution of films for cinemas, the licensing of audiovisual content, the wholesale supply of TV channels, and the retail supply of audiovisual services across the European Economic Area (EEA) — the EU plus Iceland, Liechtenstein and Norway.
It found there would still be enough competition in film production after the merger, with rivals in the EEA including Disney, NBC Universal and Sony as well as studios such as Amazon MGM, A24 and Lionsgate, alongside European studios.
Concerns were raised over film distribution in countries where Paramount has a structural partnership with Universal through United International Pictures (UIP), a joint venture that distributes films to cinemas.
In those countries, adding Warner’s film portfolio to the partnership would have increased concentration and transparency in the market, and could have led to worse rental and distribution terms for cinema operators, disadvantaging consumers.
Conditions on distribution in UIP countries
To address those concerns, Paramount committed to end its stake in UIP in the EEA within 13 months of the deal closing, the Commission said.
Paramount also committed that for 10 years it will not enter into an agreement with Universal to co-distribute films in the EEA.
The commitments include restrictions on shifting distribution arrangements for Warner and Paramount films in EEA countries where UIP operates — including Sweden, Norway, Poland, Greece and Portugal — where distribution arrangements could otherwise overlap with Universal or Disney.
The conditions were designed to ensure the merged company’s films would not be distributed jointly with those of Universal or Disney, and feedback during a market test supported the commitments.
The approval is conditional on full compliance, with an independent trustee set to monitor implementation under the Commission’s supervision.
The transaction was notified to the Commission on 2 June 2026 under the EU Merger Regulation, which governs mergers above certain turnover thresholds and allows the EU executive to block deals that would significantly impede competition in the EEA.
