Paramount is ready to sell joint venture with Universal by purchasing Warner, agency says

Illustrative photo shows logos of Paramount and Warner Bros
Reuters
Paramount Skydance Corp. Warner Bros. is prepared to divest its film distribution joint venture with Universal Pictures to address European Union competition concerns over its acquisition of Warner Bros. Discovery for US$ 110 billion, a source familiar with the matter told Reuters on Wednesday (25).
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The proposal, which will be presented next Tuesday (30), was drawn up after a meeting with European competition authorities, according to the source.
If formalized, the measure will extend the European Commission's preliminary deadline for analyzing the deal by ten working days, from July 7 to 21.
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In February, Reuters reported exclusively that the acquisition should receive approval from the European Union without major obstacles, with Paramount willing to sell smaller channels like its children's brands if necessary.
According to the source, this possibility was ruled out because regulators did not identify problems in this segment.
The sale of the film distribution partnership with Universal Pictures could alleviate the concerns expressed by cinema exhibitors in Europe.
When contacted, Paramount stated that it does not comment on ongoing regulatory processes.
The operation is also being analyzed in a separate procedure, provided for in the European Union Regulation on Foreign Subsidies, as the offer is financed by the Public Investment Fund of Saudi Arabia, L'imad Holding Company, from Abu Dhabi, and the Qatar Investment Authority.
The expectation is that Paramount will obtain unrestricted approval at this stage. Last week, the US Department of Justice approved the acquisition, saying the deal is unlikely to harm competition or consumers.
Despite this, California, New York and other US states are preparing legal action to try to block the transaction, sources familiar with the matter told Reuters.

Source: G1