Paramount has cleared a major hurdle in its proposed US$110 billion acquisition of Warner Bros. Discovery after receiving conditional approval from the European Commission. If completed, it would be one of the largest media mergers in history, bringing together Warner Bros., HBO, CNN, DC Studios, Paramount Pictures, CBS, Nickelodeon, Paramount+ and a vast catalogue of film and television content under one corporate structure, led by CEO David Ellison.

The European Union approved the transaction after Paramount agreed to a series of concessions designed to preserve competition in film distribution across Europe.

Under the agreement, Paramount must leave its stake in the United International Pictures (UIP) joint venture with Universal Pictures in the European Economic Area, within 13 months of the deal closure. The company has also committed not to enter new co-distribution agreements with Universal in Europe for the next decade.

The European Commission said the commitments address concerns that the combined business could gain excessive influence over theatrical film distribution in the region.

Despite the European approval, the transaction remains far from complete with more hurdles to come.

The proposed takeover is facing a significant legal challenge in the US after a coalition of 12 state attorneys general launched an antitrust lawsuit aimed at blocking the deal. A court hearing is scheduled for August and a federal judge has temporarily paused the acquisition while the case proceeds.

If completed, the combined company would significantly reshape the landscape for global streaming, television production and theatrical distribution and place pressure on rivals like Disney and Netflix.

For Australians, the merger has the potential to influence streaming service bundles and how premium content is licensed and distributed, including that of Paramount+ and HBO Max.

The deal has already secured regulatory approvals in several other jurisdictions, including Australia, Canada and China. Reviews remain underway in the UK.

While the European decision removes one of the transaction’s largest obstacles, the focus is now on the outcome of the US antitrust case, which could ultimately decide whether the massive media merger can proceed as planned.Â