Paramount To Divest Universal Pictures JV As It Pushes $110B Warner Bros Deal Forward: Report

Paramount Skydance Corp. is ready to sell its film distribution joint venture with Universal Pictures to address European Union antitrust concerns regarding its massive merger with Warner Bros. Discovery.

• Paramount plans to submit a formal proposal to divest the joint venture on June 30, following recent discussions with EU regulators. 
• The offer will push the European Commission’s preliminary review deadline back by 10 working days, moving the target date from July 7 to July 21. 
• Selling the joint distribution entity is expected to relieve competitive anxieties previously raised by European cinema operators. 

Paramount Skydance Corp. (PSKY) is prepared to divest its film distribution joint venture with Universal Pictures to clear European Union antitrust hurdles for its $110 billion acquisition of Warner Bros. Discovery (WBD).

The decision followed a Tuesday meeting between corporate representatives and EU antitrust regulators. A formal offer is scheduled for submission on Tuesday, June 20, Reuters exclusively reported, citing a person familiar with the matter. 

The upcoming submission will trigger an automatic 10-working-day extension of the European Commission’s preliminary review deadline, moving it from July 7 to July 21. 

While the PSKY stock slipped 0.3% on Wednesday, WBD shares gained 0.6%. 

PSKY-WBD Deal Still Needs Overseas Clearance

The $110-billion mega merger faces a multi-layered clearance process overseas. Beyond standard antitrust reviews, the transaction is being evaluated under the EU’s Foreign Subsidies Regulation. 

The separate investigation stems from the financial backing of the bid, which includes funding from Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority. Paramount is currently expected to receive unconditional approval under the foreign subsidy framework. 

Earlier report cycles in February indicated Paramount was willing to offload minor assets, such as its children's television brands, to guarantee EU approval. However, the source noted that those options have been taken off the table because regulators raised no objections to those specific broadcasting units.

Instead, the remedy has shifted entirely to the theatrical sector. Selling off the joint venture with Universal Pictures is seen as a direct move to address concerns voiced by European theater operators.

Domestic regulatory dynamics also remain split. The U.S. Department of Justice cleared the acquisition last week, concluding the combination was unlikely to restrict competition or harm consumer interests. However, Paramount still faces domestic resistance as a coalition of U.S. states, including New York and California, prepares a separate lawsuit aimed at blocking the transaction. 

PSKY, WBD Stock: Retail View 

Retail sentiment on Stocktwits for PSKY stock was ‘bearish’ and was ‘neutral’ for WBD, with message volumes between ‘normal’ to ‘low’ 

PSKY stock dropped about 28.6% year-to-date and WBD has lost nearly 6%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com. <