Reports suggest David Ellison-led company may offer to divest film distribution venture with Universal Pictures

Paramount’s $111bn (£84bn) takeover of Warner Bros Discovery is set to be approved by European Union regulators, according to reports.

The deal was given the greenlight by the US Department of Justice earlier in June and is now close to being given the nod by the EU’s European Commission, the Financial Times has reported.

Paramount Studios

Paramount’s US studio

Certain caveats would apply, the newspaper added, including Paramount potentially having to end its film distribution joint venture with Universal Pictures.

Reuters reported that a proposal to that effect would be made to EU regulators on Tuesday, 30 June, quoting a source familiar with the deal.

The landmark acquisition will bring together streamers Paramount+ and HBO Max in Europe, as well as numerous production entities and broadcast operations.

Paramount also operates regional streamer SkyShowtime across much of Europe in a partnership with Comcast, with its future unclear.

Paramount is funding the acquisition using financing from Larry Ellison, father of chief exec David Ellison, as well as around $24bn from Saudi Arabia’s Public Investment Fund (PIF) and the Qatar Investment Authority (QIA).

A final decision from the EU on whether to approve the deal or expand its investigation is due to be made by 7 July. However, if Paramount puts forward a proposal to divest its Universal Pictures deal that deadline would be extended to 21 July.

The UK’s Competition and Markets Authority (CMA) launched its inquiry into the deal earlier this month, setting a 7 August deadline, while several US states including California are set to file a lawsuit to block the deal citing concerns of kjob losses and reduced competition.

Paramount landed its deal with WBD following stiff competition from Netflix. As part of its improved offer, the David Ellison-led US studio promised a ‘ticking fee’ element, which will see shareholders in the HBO owner receiving around $650m each quarter after 30 September until the transaction closes.

Paramount did not comment on the FT’s report.

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