Europe’s Film Industry Wants Brussels to Stop the Warner-Paramount Deal

May 22, 2026 - 12:00

EBM Newsdesk Analysis

On 14 May 2026, a joint letter from three MEPs and two US Congress members landed on David Ellison’s desk with a blunt message: a shareholder vote means nothing until Brussels has had its say. Europe’s film and cinema sector is pushing the European Commission to scrutinise, and ideally block, Paramount Skydance’s $110bn takeover of Warner Bros. Discovery. The studios insist the deal is small enough to wave through. Cinema groups say the last big Hollywood merger cut films in half — and they want guarantees this one will not.

The fight matters far beyond the box office. The Commission can now review the deal under three separate rulebooks, including the new European Media Freedom Act, which weighs whether a media merger threatens editorial independence and choice. That gives Brussels real leverage over an American deal that Washington looks ready to rubber-stamp. For European producers, distributors and cinema owners, this is the moment to extract binding promises while the regulator still holds the cards.

What the deal would create

Paramount Skydance wants to buy Warner Bros. Discovery for around $110bn. The combined company would own two Hollywood studios, two streaming services, a vast film library — Harry Potter, Game of Thrones, Star Trek — and TV networks including CBS, CNN and TNT. It would be one of the largest media companies on earth.

The studios’ core argument is about size. A merged Paramount-Warner would hold less than 20% of the market in every European country it operates in. Regulators usually only step in above 30%. On that basis, Paramount expects to clear Brussels with only minor disposals, such as selling off some children’s channels.

Why the film sector is alarmed

Europe’s cinema industry is not convinced. The arthouse cinema group CICAE has called the deal an existential threat and asked the Commission to block it or impose legally binding remedies. Their evidence is the last comparable merger. Before Disney bought Fox in 2019, the two studios released 26 wide-release films a year between them. Today that number is 14 — a 46% fall.

The worry is simple: fewer studios means fewer films, worse terms for cinemas, and less choice for audiences. Paramount has promised at least 30 theatrical releases a year and a 45-day window before films move to streaming. But cinema groups point out that merger promises are easily made and easily broken. Without enforceable rules, they say, voluntary commitments are worthless.

The three rulebooks Brussels can use

The Commission has more than one tool. Alongside standard merger rules, the European Media Freedom Act lets it assess the deal’s impact on media pluralism and editorial independence — a pointed concern given Paramount’s recent purchase of a US opinion outlet. A third rulebook also applies: the Foreign Subsidies Regulation.

That last one bites because of who is paying. The deal is part-funded by Middle Eastern sovereign wealth funds, including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and an Abu Dhabi vehicle. The Commission can examine whether that state money distorts competition. None of these reviews is likely to kill the deal outright, but each can slow it down.

A delay, not a death sentence

History suggests Brussels rarely blocks media mergers. It cleared Disney-Fox, waved through Comcast’s Sky bid, and approved the original WarnerMedia-Discovery tie-up. Analysts expect this deal to follow the same path. Ellison spent January on a charm offensive across France, Germany and the UK, meeting political leaders to smooth the way.

The real risk for Paramount is time. A standard EU review runs 25 working days. If the Commission opens a deeper Phase II investigation, that adds at least 90 days. For a deal this large, every month of delay is costly — and that delay is exactly the leverage Europe’s film sector is now trying to use.

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