Paramount's Steady Path Toward EU Antitrust Clearance

Paramount Skydance is on the verge of gaining European Union antitrust approval to purchase Warner Bros Discovery, with insiders indicating that any required divestments are likely to be minimal. The proposed merger holds a market share under 20% across Europe, making it face fewer hurdles than previous similar bids.

The acquisition deal will also require validation under the EU's foreign subsidies regulation due to financial involvement from Saudi Arabia's Public Investment Fund, Abu Dhabi's L'imad Holding, and the Qatar Investment Authority. By law, these regulations target any unfair foreign state aid. Paramount and the European Commission have both refrained from immediate comments.

While Paramount seeks unconditional EU approval, it remains open to divesting minor channels like its children's brands if necessary. Paramount plans to formally seek EU approval soon, initiating a preliminary 25-day review period that may extend if remedies are proposed. The company's charm offensive in Europe, led by CEO David Ellison, shows promising signs as lawmakers signal fewer concerns over this merger than previous attempts.