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Competition enforcers in the European Union have signed off on Paramount‘s $111 billion bid for Warner Bros. Discovery, another key approval as the company fights a legal challenge from a coalition of 12 states.
The European Commission cleared the deal on Wednesday after Paramount agreed to withdraw from United International Pictures, its film distribution joint venture with Universal Pictures. The studio also said it wouldn’t enter into any film distribution deal with Universal for the next ten years.
“These commitments fully address the competition concerns identified by the Commission by ensuring that the films of the merged entity will not be distributed jointly with those Universal or Disney,” states the commission’s release.
The greenlight comes days after a federal judge in California temporarily blocked Paramount from closing the deal. The court will consider next month whether the transaction should be frozen until the case is decided, putting the studio at risk of having to pay hefty financial penalties to Warners shareholders. In June, the Justice Department approved the deal without any concessions.
