Paramount Skydance Corp. has received conditional antitrust approval from the European Union for its acquisition of Warner Bros. Discovery. European regulators signed off on the proposed takeover, bringing the companies a step closer to realizing the deal.
To address merger concerns, Paramount agreed to end a film distribution joint venture with Universal Pictures, with a requirement to pull out of the venture within 13 months of closing. The company also made concessions by refusing certain theater distribution agreements to ease regulators' concerns.
Despite the progress in Europe, the merger faces significant hurdles across the Atlantic. A federal judge in California has ordered the companies to temporarily pause their merger this week amid a high-stakes lawsuit.
The takeover, valued at $110 billion, now faces a legal hurdle that risks putting the deal on hold for months. Such a delay could result in costs that quickly climb to billions of dollars.