EU Grants Conditional Antitrust Approval To Paramount-Warner Merger
On July 22, 2026, the European Commission approved Paramount's $81 billion takeover of Warner Bros. Discovery, subject to conditions aimed at protecting European cinema operators.[1]
The Commission ordered Paramount to exit its European Economic Area (EEA) stake in United International Pictures within 13 months of closing and barred Paramount from new EEA film distribution deals with Universal for 10 years.[1] The Commission said the remedies were needed because a combined Paramount-Warner could worsen rental and distribution terms for European cinemas, and it must move Warner film distribution into Paramount's existing pipeline in affected countries.[1]
California and 11 other U.S. states have sued to block the merger, and a U.S. judge has paused the deal until at least an August 3, 2026, preliminary injunction hearing.[1]
The U.S. Department of Justice said it will not challenge the merger and issued a lengthy statement supporting the deal.[1] Paramount also pledged to pay Warner shareholders about $7 million per day in ticking fees if the deal is not closed by September 30, 2026, raising pressure to finish the transaction quickly.[1] Because of the U.S. court pause, EU approval may not allow the companies to close the deal immediately.[1]
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📌 Key Facts
- On July 22, 2026, the European Commission approved Paramount's $81 billion takeover of Warner Bros. Discovery subject to conditions.
- Paramount must end its European Economic Area stake in United International Pictures, its joint theatrical distribution venture with Universal, within 13 months of closing.
- For 10 years after closing, Paramount may not enter new film distribution agreements with Universal in the European Economic Area.
- The Commission cited concerns that a combined Paramount–Warner could worsen rental and distribution terms for European cinema operators without such remedies.
- Warner film distribution in affected European countries must be shifted into Paramount's existing distribution pipeline.
- California and 11 other U.S. states have sued to block the merger; a U.S. judge has paused the deal until at least an August 3, 2026 preliminary injunction hearing.
- The U.S. Justice Department has said it will not challenge the merger and has issued a lengthy statement in support.
- Paramount has pledged to pay Warner shareholders roughly $7 million per day in ticking fees if the deal is not closed by September 30, 2026.
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