The European Union has cleared Paramount's $111 billion acquisition of Warner Bros. Discovery. The approval came with commitments to address competition concerns in film distribution. In the United States, a federal judge has issued a temporary restraining order while considering further action.
The European Commission granted approval on July 22 after Paramount agreed to exit its international distribution partnership with Universal Pictures. The commission found sufficient competitors remain in the European Economic Area for film production and audiovisual channels. Paramount described the decision as a major milestone that refutes key assumptions in the U.S. state attorneys general complaint.
U.S. District Judge Araceli Martinez-Olguin issued a temporary restraining order on July 20 that halts the transaction for two weeks. The order responds to an antitrust lawsuit filed by California and 11 other states. A hearing on a preliminary injunction is scheduled for August 3.
Paramount has proposed a three-day evidentiary hearing in mid-to-late August to address factual disputes. The company has also consented to extend the restraining order through a court decision. A $7 million daily ticking fee begins after September 30 if the deal remains unclosed.
