Paramount Skydance is prepared to sell its film distribution joint venture with Universal Pictures to address antitrust concerns raised by European regulators reviewing its proposed acquisition of Warner Bros. Discovery.
The proposed remedy follows discussions with European Commission officials and is expected to be formally submitted next week, extending the EU’s preliminary review deadline from July 7 to July 21. The divestiture is intended to alleviate concerns from European cinema operators regarding the transaction’s impact on film distribution markets, according to Reuters. Separately, the deal is also being reviewed under the EU Foreign Subsidies Regulation because it is backed by foreign sovereign investors. The U.S. Department of Justice cleared the acquisition last week, although several U.S. states, including California and New York, are reportedly preparing legal challenges.