EU regulators clear Paramount-Skydance bid for Warner Bros. with conditions

• EU antitrust regulators approved Paramount Skydance Corp's $110 billion acquisition of Warner Bros. Discovery.
• The approval is conditional on Paramount divesting its film distribution joint venture with Universal Pictures.
• Paramount will not enter into any film distribution deal with Universal in Europe for 10 years.
• Paramount will not transfer the distribution of Warner's films to its own distributor.

European Union antitrust regulators have approved Paramount Skydance Corp's $110 billion acquisition of Warner Bros. Discovery. The approval, granted on Wednesday, comes with specific conditions aimed at preventing monopolistic practices.

Paramount must divest its film distribution joint venture with Universal Pictures. Additionally, the company is prohibited from entering into any film distribution agreements with Universal in Europe for a period of 10 years. Paramount will also be restricted from transferring the theatrical distribution of Warner's films to its own distribution arm.

The European Commission, the EU's antitrust enforcer, had until July 7 to make a decision on the deal. Representatives from Paramount and Warner had met with officials prior to the decision. The UK's Competition and Markets Authority is also conducting a separate merger inquiry into the transaction. The European Commission is also reviewing Paramount's Middle Eastern backing under its Foreign Subsidies Regulations process, with investors including Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Abu Dhabi's L'imad Holding Co.