Paramount's £80bn Warner Bros takeover gets EU conditional approval

The European Commission has granted conditional approval to Paramount Skydance's £80 billion acquisition of Warner Brothers, moving the blockbuster media merger closer to completion. The deal, which would combine two of Hollywood's biggest studios, received the green light after Paramount agreed to address antitrust concerns by exiting a film distribution joint venture with Universal Pictures.

The approval affects the global film and television industry, as the merged entity would control major franchises and distribution networks. The European Commission, the EU's antitrust regulator, had raised concerns that the takeover could reduce competition in film production and distribution. Paramount's commitment to dissolve its partnership with Universal within 13 months of closing the deal was deemed sufficient to resolve those issues.

The merger matters because it would reshape the entertainment landscape, concentrating significant market power in the hands of a single company. Paramount Skydance and Warner Brothers together own iconic properties such as Star Trek, Mission: Impossible, DC Comics, and Harry Potter. The deal, valued at £80 billion, is one of the largest in media history and has been under scrutiny by regulators worldwide.

Paramount has 13 months from the deal's closing date to withdraw from its joint venture with Universal, a condition set by the European Commission. The EU's approval is a key milestone, but the merger still requires clearance from other regulators, including the U.S. Department of Justice. The companies have not yet announced a specific closing date, but the EU's decision removes a major hurdle.

Background: The proposed acquisition was first announced in 2023, sparking debates about media consolidation. Paramount Skydance and Warner Brothers had argued that the merger would allow them to compete more effectively with streaming giants like Netflix and Disney. The EU's conditional approval suggests that regulators are willing to allow the deal if competition concerns are adequately addressed.

Next steps: Paramount must now secure approval from remaining regulators and finalize the transaction. The 13-month deadline for exiting the Universal venture will begin once the deal closes. Industry analysts expect the merger to close within the next year, subject to regulatory sign-offs.