Paramount (PSKY) Stock Jumps 3% as EU Deal Clearance Moves Closer

TLDR

• Paramount Skydance (PSKY) stock rose 3.14% after offering concessions to the EU over its Warner Bros Discovery acquisition
• The deal is valued at $110 billion including debt, or $81 billion excluding it
• The European Commission extended its review deadline to July 22 to assess the remedies
• Paramount is reportedly prepared to ditch its film distribution joint venture with Universal Pictures to satisfy regulators
• The deal faces additional scrutiny in the UK and potential legal challenges from several US states

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Paramount Skydance (PSKY) stock climbed 3.14% on Wednesday after the company submitted concessions to European Union regulators in a bid to clear the final major hurdles for its $110 billion takeover of Warner Bros Discovery (WBD).

Paramount Skydance Corporation Class B Common Stock, PSKY

WBD stock edged up 0.56% on the news.

Paramount said it has spent eight months working with the European Commission and is “confident that this remedy directly and comprehensively addresses any concerns expressed in the European Commission’s preliminary assessment.”

The Commission confirmed it received the commitments on Tuesday and extended its decision deadline from July 7 to July 22 to give regulators time to review them.

While the exact terms of the concessions were not disclosed, a source familiar with the matter told Reuters that Paramount plans to scrap its film distribution joint venture with Universal Pictures. That move is aimed at easing concerns raised by European cinema operators.

The US Department of Justice has already cleared the deal. However, California, New York, and other US states are reportedly preparing a lawsuit to block it.

UK Adds Another Layer of Scrutiny

In the UK, Culture Secretary Lisa Nandy said Tuesday she may intervene in the deal on public interest grounds, citing potential concerns over news, children’s television, and streaming services.

The deal is also being examined under the EU’s foreign subsidies rules. That review was triggered by the involvement of sovereign wealth funds — Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Company — which are all backing Paramount’s bid.

Financing Raises Its Own Questions

The foreign subsidy angle adds an extra layer to an already complex regulatory picture. The Commission does not often block deals outright when remedies are on the table, and Paramount’s confident tone suggests the two sides are close to an agreement.

Paramount said it is pushing for “timely clearance,” a phrase that signals the company wants the EU process wrapped up before the new July 22 deadline if possible.

The Commission’s decision is now due no later than July 22.