EU clears Paramount $110B Warner Bros. Discovery merger with conditions
Paramount's massive $110 billion takeover of Warner Bros. Discovery just got the green light from the European Union, but with strings attached.
To keep things fair for movie fans, Paramount has to end its distribution deal with Universal Pictures in Europe within 13 months after the merger closes.
This is meant to prevent films of the merged entity from being bundled with Universal or Disney, easing worries about too much power in one place.
US states sue over competition concerns
Meanwhile, things are tense in the US California and 11 other states are suing to block the deal over competition concerns, and a judge has hit pause on everything for two weeks.
If Paramount misses a September deadline, it could owe Warner Bros. shareholders $7 million every day, ouch!
The UK government is also worried about media diversity and might step in too.
A big court hearing in August will determine whether to pause the deal pending a full trial.