Details
One of the world’s biggest media deals is moving closer to clearing a major European hurdle, after Paramount Skydance offered concessions to the European Commission in its bid to acquire Warner Bros. Discovery.
- The European Commission extended its review deadline to July 22. The previous deadline was July 7.
- According to Reuters, Paramount Skydance offered to exit its European film-distribution joint venture with Universal Pictures.
- That venture was one of the issues that had raised competition concerns among EU regulators.
- If completed, the deal would bring major media assets under one roof, including Paramount, Warner Bros., CNN, CBS and HBO Max.
- The U.S. Justice Department closed its investigation in June, saying the deal was unlikely to harm competition or consumers in streaming, television or film.
- The European track is still open, while the U.K. is considering whether to intervene over concerns involving media plurality, news, children’s content and broadcasting.
- More than 25 civil-society groups have urged the EU to block the deal, warning about its impact on media and film diversity.
- The transaction is also drawing political scrutiny because of roughly $24 billion in financing from Gulf investors and sovereign wealth funds, including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’IMAD Holding.
- The deal’s reported value reaches about $110 billion when debt is included, making it one of the largest mergers in the global media and entertainment industry.
What to watch
The key date is July 22. If Brussels decides the concessions are enough, the deal will move closer to completion. If regulators remain unconvinced, the Commission could open a deeper investigation and delay one of the biggest media transactions in the world.
