The move follows concerns raised by the European Commission's antitrust regulators over competition issues surrounding the blockbuster transaction, which is set to reshape the global media and entertainment landscape.
According to the European Commission, Paramount Skydance has formally committed to exiting United International Pictures (UIP), a distribution joint venture it has shared with Universal Pictures for decades. The concession prompted the Commission to extend its provisional deadline for reaching a decision on the merger from July 7 to July 22, giving regulators additional time to assess the revised commitments.
UIP was established in 1981 and is headquartered in London. Although the joint venture has significantly reduced its global footprint over the years, it continues to distribute films across several European markets, including Denmark, Greece, Croatia, Hungary, Norway, Poland and Sweden.
Paramount had not issued an official response to requests for comment at the time of filing.
The proposed merger, finalized in February after an extended bidding battle that reportedly included competition from Netflix, would unite two of Hollywood's largest entertainment companies under one corporate structure.
Once completed, the transaction would combine Paramount's portfolio—which includes CBS, CBS News, Paramount Pictures and Paramount+—with Warner Bros. Discovery's extensive lineup of brands, including HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS and HGTV.
Industry analysts believe the combination would create one of the world's largest media companies, strengthening its position in streaming, television broadcasting, film production and news.
However, regulatory scrutiny remains one of the biggest hurdles before the deal can be completed.
The European Commission's investigation represents one of the final major approvals required for the merger to proceed. The transaction is also undergoing review in the United Kingdom, where government officials have indicated they may intervene over concerns relating to media ownership and competition.
Speaking earlier this week, the U.K.'s Secretary of State for Culture, Media and Sport, Lisa Nandy, cited concerns over whether there would remain "a sufficient plurality" of people controlling U.K. media if the merger is approved.
In the British market, the transaction would place broadcaster Channel 5, TNT Sports, as well as streaming platforms Paramount+ and the recently launched HBO Max, under the same ownership structure, further intensifying regulatory attention.
Meanwhile, financing for the landmark acquisition has attracted significant backing from Middle Eastern investors. Saudi Arabia's Public Investment Fund (PIF), Abu Dhabi's L'imad Holding Company and the Qatar Investment Authority (QIA) have collectively committed $24 billion toward the transaction.
So far, however, those investments have not emerged as a major concern for regulators in either the European Union or the United Kingdom, with competition and media plurality remaining the primary focus of ongoing reviews.
If approved, the merger would mark one of the largest media consolidations in recent history, reshaping the competitive landscape for traditional broadcasters, film studios and streaming platforms across global markets.