Paramount Skydance Corp has prepared to divest its film distribution joint venture with Universal Pictures in an effort to address antitrust concerns raised by European Union regulators regarding its proposed $110 billion acquisition of Warner Bros Discovery.
As per media reports, the company has planned to submit the proposed remedy to the European Commission next Tuesday following discussions with EU antitrust regulators. The move is expected to extend the Commission’s preliminary review deadline from July 7 to July 21.
The proposed divestment has focused on Paramount’s film distribution joint venture with Universal Pictures, a measure that could help alleviate concerns expressed by European cinema operators. Earlier considerations involving the sale of some of Paramount’s smaller television channels, including children’s brands, have reportedly been dropped after regulators did not identify competition concerns in that segment.
The acquisition has also been reviewed under the European Union’s Foreign Subsidies Regulation because the bid has received financial backing from Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company and the Qatar Investment Authority. Paramount has been expected to secure unconditional approval in that review process.
In the United States, the Department of Justice has already cleared the acquisition, stating that the transaction is unlikely to harm competition or consumers.
However, the deal has continued to face scrutiny elsewhere. Several U.S. states, including California and New York, have reportedly been preparing legal action aimed at blocking the proposed acquisition.
