European Union antitrust regulators officially signed off on the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance on Wednesday, according to CNBC. The regulatory approval represents a major milestone for the deal, which seeks to combine two of Hollywood’s most prominent film studios, an extensive portfolio of pay TV networks, and streaming services including HBO Max and Paramount+.
EU Antitrust Regulators Approve Paramount-Warner Bros. Discovery Merger
The European Commission’s decision was contingent upon specific concessions offered by Paramount to resolve competition concerns. Under the terms of the agreement, Paramount must divest its stake in a film distribution joint venture with United International Pictures in Europe. Additionally, the company has committed to not entering into any film distribution deal with Universal in Europe for the next 10 years. The Commission also prohibited the transfer of Warner Bros. film distribution in theaters to Paramount’s own internal distributor, as reported by Usnews.
These commitments fully address the competition concerns identified by the Commission by ensuring that the films of the merged entity will not be distributed jointly with those Universal or Disney,
the EU stated in its release.
For more on this story, see California Leads 12 States in Suing Paramount Over $110B Warner Bros. Deal.
Legal Hurdles Persist in the United States
While the European Commission has cleared the path for the merger, the deal faces significant challenges in the United States. A coalition of state attorneys general, led by California’s Rob Bonta, filed a lawsuit last week seeking to block the transaction on antitrust grounds.
Complicating the timeline, a California district judge granted a temporary restraining order earlier this week, imposing a 14-day pause on any progress regarding the merger. Despite these legal obstacles, Paramount has maintained that it remains on track to close the deal by the end of September. The merger has already received approval from the antitrust division of the U.S. Department of Justice and several other global jurisdictions.
This follows our earlier report, Paramount Warner Deal Blocked.
Strategic Scope of the Combined Entity
The merger, which was first announced by Paramount CEO David Ellison in March 2026, aims to create a media conglomerate capable of competing with scaled streaming giants such as Netflix. Projections shared during the March 2026 merger call estimated the combined company would generate roughly $69 billion in 2026 revenue and $18 billion in EBITDA, with $6 billion in projected synergies. Leadership has further targeted more than $10 billion in annual free cash flow by 2030.
The combined entity would command a massive content library, including franchises ranging from “Casablanca” and “Harry Potter” to Mission: Impossible
and “Yellowstone.” On the streaming front, the merger would consolidate HBO Max—which surpassed 140 million subscribers at the close of Q1 2026—with Paramount+, which saw 17% year-over-year growth in the same period. Together, the platforms would reach an estimated base of over 200 million direct-to-consumer subscribers from the first day of operation.
Read also: Paramount-Warner Deal Faces UK Regulatory Uncertainty.
Corporate Implications and Market Reaction
Following the announcement of the EU’s decision on Wednesday, Paramount’s stock rose 3% in midday trading. A Paramount spokesperson noted that the company has remained engaged with all regulatory and law enforcement bodies in a constructive and transparent manner.
If the deal successfully navigates the remaining U.S. litigation, the Ellison family will gain control of a portfolio that includes CNN, CBS News, and dozens of cable networks such as TNT, TBS, Food Network, MTV, and Cartoon Network. While the company continues to target a third-quarter close, the final resolution remains subject to the outcomes of the ongoing domestic legal challenges.
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