Paramount's WBD merger faces major regulatory hurdle

One of the biggest media deals in history is inching toward the finish line. But first, Paramount Skydance must clear a significant hurdle in Europe.

The proposed acquisition of Warner Bros. Discovery by Paramount Skydance (PSKY) is valued at $110 billion, Bloomberg confirmed. 

It would combine two of Hollywood's most storied studios, two major news networks, and a combined streaming base of over 200 million subscribers, Bloomberg noted. 

But before any of that becomes reality, EU regulators want some concessions.

The European Commission has set a deadline of July 7, 2026, to decide whether to approve the deal or escalate its review, according to Bloomberg. The pressure is on for Paramount to move fast.

What the EU wants Paramount to give up

EU competition chief Teresa Ribera flagged concerns about film distribution during the review, according to Bloomberg. 

Specifically, she wants to ensure that "alternatives that producers and filmmakers can find" exist to get their content into movie theaters and homes.

Her comments followed a meeting in Brussels between Paramount's lawyers and European Commission enforcers.

Ribera also raised questions about whether the deal could limit creativity or restrict recognition of cultural heritage and languages across Europe, Bloomberg reported.

The most concrete demand so far, noted by Bloomberg, is that Paramount may need to exit a joint venture it holds with Universal Pictures. 

Related: Paramount makes bold legal move for Warner Bros. deal

According to people familiar with the matter who spoke to Bloomberg on condition of anonymity, Paramount is open to making that move in exchange for regulatory clearance.

A Paramount spokesperson said the company has "been engaged with all regulatory and law enforcement bodies in a constructive and transparent manner and will continue to do so," according to Bloomberg.

Under EU merger rules, a company has a short window during an initial Phase 1 probe to offer remedies before regulators escalate to a deeper Phase 2 investigation. 

A Phase 2 inquiry would push back the decision by roughly three months, Bloomberg said. Paramount's lawyers reportedly need to file any proposed remedies by early July, giving officials time to test the fixes before the deadline.

Why the Paramount-WBD deal matters for the future of streaming

This merger is about building something that can realistically compete with Netflix and other scaled streaming giants.

When Paramount CEO David Ellison announced the deal in March 2026, he framed it plainly. "This is not about consolidation. It's about reinventing the business."

The combined company, as outlined in the March 2026 merger call, would have roughly $69 billion in estimated 2026 revenue and $18 billion in EBITDA, inclusive of $6 billion in projected synergies.

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Leadership also targets more than $10 billion in annual free cash flow by 2030.

On the streaming side, Paramount+ grew 17% year over year in the first quarter of 2026.

Meanwhile, Warner Bros. Discovery's HBO Max surpassed 140 million subscribers at the close of the first quarter of 2026, as WBD CEO David Zaslav told investors during the company's Q1 2026 earnings call.

Combining both platforms would give the new entity roughly 200 million direct-to-consumer subscribers from day one. That is comparable in scale to Disney and trails only Netflix globally.

Gilbert Flores&solVariety via Getty Images

The deal is mostly done, but the EU remains the last real test

• Scrutiny from the EU's antitrust arm is one of the last remaining obstacles for David Ellison, who spent more than five months outmaneuvering rival suitor Netflix with repeated bids and direct engagement with shareholders, Washington officials, and President Donald Trump.
• In the U.S., the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has already expired. 
• Germany and Slovenia have already granted their approvals. 
• Most global regulatory clearances were secured before the deal was even signed.
• If approved, the Ellison family would gain control of one of the world's most powerful media portfolios. 
• That includes Warner Bros. and Paramount film studios, the HBO Max streaming platform, CNN and CBS News, and dozens of cable networks spanning TNT, TBS, Food Network, MTV, Cartoon Network, and more. 
• The library would cover franchises from "Casablanca" and "Harry Potter" to "Mission: Impossible" and "Yellowstone."
  Source: Bloomberg

Paramount bosses are still targeting a Q3 close. A swift EU resolution could actually push that date earlier.

The Financial Times has reported that regulators are expected to give the green light, provided the remedies are accepted. 

That means the deal's fate could hinge on whether Paramount is willing to walk away from its Universal joint venture.

If it is, two of Hollywood's biggest names could formally become one before summer ends.

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