EU reviews $110 bn Paramount-Warner deal over impact on films and access

European Union regulators are assessing whether Paramount Skydance Corp.’s proposed $110 billion acquisition of Warner Bros. Discovery Inc. could affect filmmakers’ ability to bring content to audiences across the bloc, according to a report by Bloomberg.Teresa Ribera, the EU’s competition chief, said regulators are evaluating whether the deal could reduce opportunities for creators and producers in a market that remains commercially significant, Bloomberg reported. Officials are also examining whether filmmakers would continue to have sufficient avenues to distribute content through cinemas and households if the transaction proceeds.

According to the report, regulators are additionally considering whether the merger could have implications for creativity, cultural heritage and linguistic diversity within the European media landscape.
The scrutiny comes after representatives of Paramount met European Commission officials in Brussels to discuss a possible route towards regulatory approval, Bloomberg said. The commission is due to decide by July 7 whether to clear the transaction at the current stage or subject it to a more detailed investigation.Under EU merger rules, companies have a limited period during the initial review process to address any competition concerns raised by regulators. Bloomberg reported that any proposed remedies would need to be submitted by early July to allow officials time to assess them before a decision is made.

The European Commission could either approve the deal or launch a Phase 2 investigation, a move that would likely extend the review by around three months, although deadlines can be prolonged, according to Bloomberg.

The EU review represents one of the final regulatory obstacles for Paramount Chief Executive Officer David Ellison. Bloomberg reported that Ellison secured the deal after fending off competition from Netflix Inc. through multiple bids over more than five months.

If approved, the transaction would place the Ellison family in control of a major media group spanning film studios, television networks, streaming assets and cable channels, Bloomberg reported.