European Union gives its greenlight to Paramount and Warner's mega merger with some conditions

By — Wyatte Grantham-Philips, Associated Press Wyatte Grantham-Philips, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/world/european-union-gives-its-greenlight-to-paramount-and-warners-mega-merger-with-some-conditions Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter European Union gives its greenlight to Paramount and Warner's mega merger with some conditions World Jul 22, 2026 6:03 PM EDT NEW YORK (AP) — The European Union approved Paramount's $81 billion takeover of Warner Bros. Discovery this week, effectively clearing another regulatory hurdle for a mega merger that could vastly reshape the entertainment and media landscape worldwide. But the greenlight comes with certain conditions. The European Commission — which serves as the EU's antitrust enforcer — said that even with a Paramount-Warner combo, enough competitors would exist across markets like film production and streaming in its 27-nation bloc. Still, when it comes to distributing movies to theaters, the Commission warned of high concentration that could lead to "worse rental and distribution terms for cinema operators, ultimately disadvantaging consumers." READ MORE: Judge says Paramount and Warner Bros. must halt merger for at least 2 weeks as states challenge deal To address this, the Commission said Skydance-owned Paramount agreed to end its European Economic Area stake in United International Pictures — a longstanding venture with another major studio, Universal, that Paramount has used to distribute films in theaters outside North America. The company must end that partnership within 13 months of closing its Warner acquisition, the Commission said, and not enter any new agreements with Universal for the next 10 years. Among other terms, current distribution of Warner films must be shifted to the same pipeline Paramount is using in these European countries. The European Commission said its approval was conditional on the company's commitments and that it would monitor their implementation, without expanding further on how that would be enforced. READ MORE: What a combined Paramount-Warner would mean for streaming, movies and news Paramount welcomed the EU's greenlight, which it said represented "a major milestone" toward completing its acquisition. In a Wednesday statement, the company added that such clearances reflect how a Paramount-Warner combo "will enhance consumer choice" and create a business with a scale "capable of competing with the tech companies that have come to dominate the industry." Universal did not respond Wednesday to a request for comment about Paramount's new film distribution commitments in Europe. A Paramount-Warner combo would mean putting HBO Max, fan favorite titles like "Harry Potter" and even CNN under the same roof with CBS, "Top Gun" and the Paramount+ streaming service. Beyond movies and streaming, both American companies also own a handful of European-based TV assets — including