Paramount to Divest Universal Film JV to Satisfy EU Regulators for Warner Bros. Discovery Deal

Paramount Skydance Corp is preparing to sell its international film‑distribution joint venture with Universal Pictures as a remedy for antitrust concerns raised by the European Commission over its proposed $110 billion acquisition of Warner Bros. Discovery. The divestiture is expected to be submitted to EU officials next week and would extend the Commission’s preliminary review deadline from July 7 to July 21. EU regulators have indicated that, subject to this concession, they are likely to clear the merger, which would combine major studios and streaming assets such as CBS, HBO, CNN, Paramount Pictures and Warner Bros. Studios.

In the United States, the Department of Justice has already cleared the deal, but several state attorneys general, including California and New York, are preparing legal challenges. The Federal Communications Commission has also delayed its decision pending a review by the inter‑agency Team Telecom, adding further uncertainty for investors. Additionally, Paramount has denied reports that its executives promised President Donald Trump an overhaul of CNN as part of the transaction, stating that no such commitments have been made.

The merger is being examined under the EU’s Foreign Subsidies Regulation because it is financed in part by sovereign wealth funds from Saudi Arabia, Abu Dhabi and Qatar. Pending approvals, the combined entity would become one of the world’s largest media and entertainment companies.