Paramount proposes remedies to secure EU approval on WBD deal

Paramount has submitted remedies to secure European Commission approval for its $111bn (£84bn) takeover of Warner Bros Discovery.

Details of the remedies were not disclosed as per the EC’s policy, but reports last week suggested Paramount would have to end its film distribution joint venture with Universal Pictures to get a greenlight.

Paramount did not confirm what changes it had proposed but confirmed remedies had been submitted, with the EC extending its deadline for a decision from 7 July to 22 July.

The US studio added that it was “confident that this remedy ⁠directly and comprehensively addresses any concerns expressed in the European Commission’s preliminary assessment and support the path for timely clearance.”

The deal was given the nod by the US Department of Justice earlier in June but the UK government on Tuesday said it is “minded to intervene” as it explores the implications of the takeover on news and children’s output, as well as streaming.

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, although its future is 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).

Several US states including California are set to file a lawsuit to block the deal citing concerns of job 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.