EU Set to Clear Paramount’s Warner Deal

The European Commission does not plan to block Paramount’s $111bn merger with Warner Bros Discovery, despite warnings from European cinema operators and civil society groups over film production and media diversity, according to people familiar with the matter.

At a meeting with EU officials in Brussels on Tuesday, the companies were told that approval was likely if Paramount cut its film distribution ties with Universal Pictures in several EU countries.

The remedy would concern United International Pictures, a joint venture between Paramount and Universal, and must be submitted formally by 30 June.

The move could prevent an in-depth Commission investigation and remove one of the main regulatory hurdles after the US Department of Justice approved the deal earlier this month.

In Europe, the deal has raised concerns over its impact on local film production. The Union of European Cinemas (UNIC) has warned of potential harm, while civil society groups say the merger would give the American owner too much control over European television channels.

(Politico, bak)