Paramount Exits Universal Joint Venture to Facilitate Warner Bros. Merger Approval in EU
Paramount Skydance is making moves to leave behind United International Pictures, its collaborative film distribution venture with Universal Pictures. Recent reports show that this decision is part of Paramount’s strategy to snag regulatory approval from the European Union for their planned acquisition of Warner Bros. Discovery, a deal estimated at a hefty $111 billion.
The European Commission’s antitrust authorities recently advised Paramount to step away from their stake in UIP in response to concerns raised by European cinema operators with regards to the Paramount-WBD merger. Once a key international distributor for both companies, the London-based UIP has seen significant downsizing over the years and currently operates in just a small handful of European countries.
While the specifics of Paramount’s solutions to address concerns over the merger have not been made public, the European Commission has pushed back their decision deadline on the matter to July 22, hinting at a potential approval down the road.
This major merger, announced back in February after some competition from Netflix for WBD, would join Paramount’s lineup — encompassing CBS, CBS News, Paramount Pictures, and Paramount+ — with Warner Bros. Discovery’s offerings, such as HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, and HGTV. To help fund the deal, a sum of $24 billion from investors like Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority has been put forward.
In the U.S., the Department of Justice has already given its go-ahead for the acquisition. Across the pond in the UK, Culture Secretary Lisa Nandy mentioned considering an intervention due to concerns about media diversity, specifically with UK broadcaster Channel 5 and TNT Sports merging with Paramount+ and HBO Max under one roof. The Competition and Markets Authority in the UK is running a separate assessment of the situation.
