EU clears $110bn Paramount and Warner Bros merger, but it remains on hold in US

July 22, 2026

The European Commission has approved the proposed $110 billion acquisition of Warner Bros Discovery by Paramount Skydance, contingent upon Paramount terminating its European film distribution partnership with Universal Pictures within thirteen months and avoiding similar arrangements for a decade. Despite this European clearance, the deal faces significant opposition in the United States, where twelve states have filed a lawsuit claiming the merger would harm theaters, cable distributors, and audiences, prompting a judge to issue a temporary pause on the transaction. If the merger isn't finalized by September 30th, Paramount faces daily penalties of approximately $7 million to Warner Bros shareholders.

Who is affected

Paramount Skydance and Warner Bros Discovery (merging companies)
Universal Pictures (losing European distribution partnership with Paramount)
Warner Bros shareholders (potential recipients of delay fees)
Movie theaters and basic cable distributors in the US
Audiences nationwide
Writers Guild of America members and emerging writers
European and UK viewers
12 US states (plaintiffs in the lawsuit)

What action is being taken

European regulators have cleared the merger with conditions
Paramount is required to end its film distribution partnership with Universal Pictures in Europe within 13 months
A coalition of 12 US states has filed a lawsuit to block the deal
US Judge Araceli Martínez-Olguín has temporarily paused the takeover
UK regulators are weighing up their own intervention
The Writers Guild of America is opposing the deal

Why it matters

This merger would create a massive media conglomerate with significant control over film production, distribution, and exhibition, potentially reshaping the entertainment landscape. The combined entity's market power raises concerns about reduced competition in theatrical releases, cable distribution, and streaming services, which could affect consumer choice and pricing. The deal's outcome will also impact employment conditions for creative professionals, particularly writers, who fear wage suppression and fewer opportunities. The unprecedented scale of this $110 billion transaction and the multi-jurisdictional regulatory scrutiny reflects growing concerns about media consolidation and its effects on diversity of content, fair competition, and creative workforce stability.

What's next

Paramount must terminate its European distribution partnership with Universal Pictures within 13 months
US legal proceedings will continue as the court considers the 12 states' lawsuit claims
If the deal isn't completed by September 30th, Paramount will have to pay Warner Bros shareholders approximately $7 million per day
UK regulators will make a decision on potential intervention
Paramount cannot launch a similar distribution venture in Europe for 10 years

Read full article from source: BBC