EU Approves Paramount-Warner Bros. Merger, but US Court Order Keeps Deal on Hold

The European Commission approved Paramount Skydance's proposed acquisition of Warner Bros. Discovery, granting conditional clearance that removes one regulatory obstacle to the deal. Reports differ on the transaction's valuation, with figures cited ranging from $81 billion to $111 billion, and it is unclear which figure reflects the current or original deal terms. The merger had already received approval from the US Department of Justice in June. Separately in the United States, a coalition of 12 state attorneys general filed a lawsuit seeking to block the merger, arguing it violates antitrust law by reducing competition in the film and cable television industries. The lawsuit was filed on July 20, and a hearing was held the same week to determine whether a judge would issue a temporary restraining order. A judge granted a temporary pause on the deal on July 20, intended to give the court time to consider the states' antitrust claims before allowing the merger to proceed. As of the most recent reporting, the merger remains on hold in the US pending further judicial review, even though it has cleared both the Department of Justice and the European Commission. The core dispute centers on whether the merger would harm consumers and reduce competition, a claim the state attorneys general are pursuing in court. It remains unresolved how long the temporary pause will last, what conditions the EU has specifically imposed on Paramount, and whether the US court challenge will ultimately succeed in blocking or modifying the deal.