Overview
Paramount Skydance is widely expected to secure approval from European Union antitrust authorities for its proposed purchase of Warner Bros Discovery, according to two people directly familiar with the matter who spoke on condition of anonymity. They said that, if regulators require remedies, those are likely to be relatively modest.
Why Europe may be straightforward
Sources highlighted that the combined Paramount and Warner Bros would register a market share below 20% across all European markets. That comparatively low level of overlap is an important factor for EU competition enforcers, who are known to adopt a stricter stance when market shares reach 30% or higher.
Paramount has not yet filed a formal merger notification with the European Commission but is supplying information about its operations to regulators as preparations continue. In parallel, the transaction will be scrutinised under the EU's foreign subsidies regulation (FSR) because the bid is supported by several Gulf sovereign investors, specifically Saudi Arabia's Public Investment Fund, Abu Dhabi's L'imad Holding Company and the Qatar Investment Authority. The FSR is designed to detect and counteract distortive foreign state aid.
Paramount declined to comment on the matter. The European Commission did not immediately respond to a request for comment.
Potential remedies and overlaps
While the company aims for unconditional clearance, sources said Paramount is prepared to divest relatively minor assets if needed to address any competition concerns. Potential divestments cited include smaller television channels, such as some children-focused brands. Overlaps identified by the sources include the combination of two film studios and several TV channels - Paramount owns Nickelodeon while Warner Bros holds the Cartoon Network.
Regulatory timeline and other approvals
The people familiar with the situation expect Paramount to file for formal EU approval in the coming months. Such a notification would trigger a 25-working-day preliminary review by the Commission. That period can be extended by an additional 10 working days if the parties offer remedies at the end of the initial 25-working-day review.
Beyond the EU process, the transaction requires approval in other major jurisdictions. Sources identified California as potentially the most significant obstacle to completing the deal. Regulatory clearances from authorities in the United States and the United Kingdom are also listed as key conditions for the transaction to proceed.
Lobbying and meetings
Paramount has stepped up engagements with European officials since January. The company's chief executive, David Ellison, met with French President Emmanuel Macron that month, and Paramount's chief legal officer, Makan Delrahim, held a meeting with the Commission's top mergers official, Guillaume Loriot, during the same week. Delrahim is reported to have a prior professional acquaintance with Loriot dating to Delrahim's earlier role as assistant attorney general at the U.S. Department of Justice's antitrust division.
Political perspective
European Parliament lawmaker Andreas Schwab, who has been critical of a separate streaming bid and has been active in technology legislation, met Delrahim last month and indicated fewer objections to the Paramount proposal. Schwab said: "I think Paramount is something we could accept. It is a concentration in the production of films. There is no risk of a digital champion taking over the video streaming market."
Context limitations
Details in this report reflect only the information provided by the two people with direct knowledge and public statements indicated here. No formal filings to the European Commission had been made at the time described, and regulatory outcomes remain subject to the EU review process and reviews in other jurisdictions.