EU clears Paramount's takeover of Warner Bros. Discovery with conditions

On 22 July 2026 the European Commission granted conditional clearance for Paramount Skydance's takeover of Warner Bros. Discovery: Paramount must divest its EEA stake in the theatrical distribution joint venture United International Pictures (with Universal) within 13 months and may not enter new distribution agreements with Universal for ten years; the Commission found sufficient competition in production and streaming. The deal also covers European TV assets such as Warner's Polish TVN Group. Background: Paramount prevailed after nine offers in a bidding war — Netflix's $83bn acquisition agreed in December 2025 collapsed after the WBD board deemed Paramount's cash offer superior on 26 February 2026 and Netflix withdrew; WBD shareholders approved in April and US antitrust clearance (DOJ) followed in May. Still open are, among other things, a lawsuit by 12 US states (hearing 3 August); from 30 September a 'ticking fee' of around $7m per day applies. Second source: Reuters/US News. Update (24 July 2026): Paramount and the twelve suing US states agreed to cancel the preliminary-injunction hearing scheduled for 3 August. In exchange Paramount is suspending completion of the acquisition until June 2027 — or five days after a ruling, whichever comes first. A joint statement on the timetable for the main proceedings is due by 31 July; Paramount is pushing for a November 2026 trial date, while the states had proposed April 2027. The closing horizon therefore effectively moves into 2027. Update (4 August 2026): Judge Araceli Martínez-Olguín (U.S. District Court, Northern District of California) set the trial date in the antitrust case — neither Paramount's preferred November 2026 nor the plaintiffs' proposed April 2027: the trial starts on 2 March 2027 and is scheduled for twelve court days ending no later than 19 March 2027, with written closing briefs due by 5 April 2027. The suit by twelve US states is led by California Attorney General Rob Bonta. Update (6 Aug 2026): The UK Competition and Markets Authority cleared the acquisition unconditionally, and the UK government (DCMS) declined to issue a public interest intervention notice. That removes one of the last major regulatory hurdles — the parties report clearances in 66 further jurisdictions. The US antitrust case brought by twelve states (trial starting 2 March 2027) is unaffected. Update (21 Sept 2026): The twelve plaintiff US states led by California Attorney General Rob Bonta reached a settlement with Paramount and are dropping their antitrust lawsuit; the Writers Guild also settled its suit. Paramount commits, among other things, to 30 theatrical films a year and an independent editorial board for CBS News and CNN (within 180 days of closing). WBD CEO David Zaslav expects the deal to close no later than early October 2026; the trial scheduled for March 2027 is thus off (CNN, 21 Sept 2026: https://www.cnn.com/2026/09/21/media/paramount-wbd-settlement-cnn-ellison-bonta-lawsuit). Update (30 Sep 2026): A California federal judge formally approved the settlement with the states, removing the last hurdle; according to a joint statement the takeover is expected to close on 6 October 2026, with Mattel CEO Ynon Kreiz joining as co-CEO alongside David Ellison from 5 October (NBC News, 30 Sep 2026). Update (06.10.2026): Paramount has completed its acquisition of Warner Bros. Discovery; WBD shareholders receive about $31.02 per share in cash. The combined group is named Skydance Corporation, trades on the NYSE under the ticker SKYD and is targeting annual run-rate synergies of more than $6bn within three years (Paramount, press release filed with the SEC, 06.10.2026). Update (06.10.2026): Poland's Ministry of State Assets has opened an administrative procedure after closing to examine whether Paramount Skydance's indirect control of broadcaster TVN threatens public order or security; TVN has been on the list of state-protected companies since December 2024. The authority has 90 days from receipt of the notification; at worst it can bar the exercise of voting rights, and an order to sell the shares is also on the table (Rzeczpospolita, 06.10.2026; Bankier.pl, 06.10.2026).