Paramount met with officials from the European Commission on Tuesday as they look to secure regulatory approval of their $110 billion merger with Warner Bros. Discovery.
The Financial Times reported on Wednesday that the David Ellison-led media giant and regulator are discussing remedies to clear the deal. While those remedies are still being worked out, the outlet says it could include a requirement for Paramount to exit a joint venture with Universal Pictures that distributes films in several international markets.
The EC has set an initial deadline of July 7 to decide whether to clear or order a Phase 2 investigation of the merger and a July 14 deadline on its review of the foreign investment in the deal.
A Paramount spokesperson told TheWrap that they have been engaged with all regulatory and law enforcement bodies in a “constructive and transparent manner” and will continue to do so, but declined to comment further on its ongoing regulatory proceedings. Representatives for EC declined to comment.
Approval from the EC is one of the last remaining regulatory obstacles as Paramount and Warner Bros. look to close their merger by the end of the third quarter. In addition to the EC, the U.K. Competition and Markets Authority will decide on whether to launch a Phase 2 investigation by Aug. 7.
The Paramount-WBD merger notably received approval from the U.S. Department of Justice earlier this month and shareholders in April, though U.S. state attorneys general could move forward with a lawsuit to block the deal as soon as this month.
The transaction was also granted clearance by regulators in South Africa, China, Australia, New Zealand, Saudi Arabia, Ukraine, Serbia and North Macedonia and foreign direct investment authorities in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France and Romania. The company also says there’s “no statutory impediment” to clear the merger in Canada after a statutory waiting period under the country’s Competition Act expired.
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
