Paramount has expressed confidence that its proposed remedies will comprehensively address regulatory concerns.
As Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Abu Dhabi's Limad Holding are providing financing for Paramount's acquisition bid, the deal is also subject to review under the EU's Foreign Subsidies Regulation.
Key Developments
Paramount Skydance has offered a series of concessions to the European Commission in an effort to gain approval for its $81 billion acquisition of Warner Bros. Discovery.
Paramount Skydance has submitted a package of behavioral commitments to EU antitrust regulators aimed at alleviating competition concerns. The European Union is currently conducting an antitrust investigation into the planned $81 billion takeover of Warner Bros. Discovery.
The European Commission, the EU's executive arm and antitrust authority, confirmed on Wednesday that it had received the commitments from the companies. The latest provisional deadline for concluding the antitrust review is July 22.
According to an update on the regulator's website, the companies submitted their commitments on Tuesday. The Commission has not yet disclosed the specific details of the offered concessions.
Paramount stated that it has engaged in eight months of constructive dialogue with the European Commission. The company believes the submitted remedy package "directly and comprehensively addresses all concerns raised in the Commission's preliminary assessment and will facilitate the timely approval of the transaction."
Given that the acquisition is backed financially by Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Abu Dhabi's Limad Holding, the deal also faces scrutiny under the EU's rules on foreign subsidies. Concurrently, the United Kingdom is reviewing the transaction. UK Culture Secretary Lisa Nandy stated on Tuesday that the government could intervene on public interest grounds.
Including the target company's assumed debt, the total valuation for the transaction reaches $110 billion.