Paramount Skydance Corp has lodged a set of remedies designed to tackle competition issues identified by the European Commission in connection with its proposed $110 billion acquisition of Warner Bros Discovery, a regulatory filing showed on Wednesday.
In the filing, Paramount said it was "confident that this remedy directly and comprehensively addresses any concerns expressed in the European Commission’s preliminary assessment and support the path for timely clearance".
The European Commission - which enforces competition rules across the bloc - issued no detailed description of the measures, consistent with its practice of not disclosing specific remedy terms in public filings.
According to a person with direct knowledge of the matter who spoke last week, Paramount plans to offer the divestment of its film distribution joint venture with Universal Pictures as part of the package. That step is intended to respond to antitrust objections raised by European cinema operators.
To allow time for examination of the proposed solution, the Commission extended its deadline to reach a decision to July 22 from an earlier deadline of July 7.
Separately, the U.S. Department of Justice has granted clearance for the transaction. However, the deal faces possible legal challenges inside the United States - sources have said that California, New York and other states are preparing a lawsuit to try to block the acquisition.
In addition to U.S. state action, United Kingdom authorities have indicated they may intervene in the transaction, citing possible effects on news provision, children’s television and streaming services.
The remedies filing represents a key step in the EU review process, giving regulators extra time to assess whether the proposed divestment and any other measures fully eliminate competition concerns. The extension to July 22 provides a clear timetable for the Commission to complete its assessment of the package Paramount submitted.
At this stage, while the European filing and the company's public statement convey confidence, uncertainty remains because of potential parallel challenges from U.S. state attorneys general and the possibility of U.K. intervention.
Bottom line: Paramount has proposed a remedy it says addresses the European Commission’s preliminary objections, prompting a deadline extension to July 22. The transaction has cleared the U.S. Department of Justice but still faces potential state-led litigation in the United States and scrutiny from U.K. regulators.