Paramount ready to sell Universal Pictures JV for Warner deal, source says

By Foo Yun Chee

BRUSSELS, June 24 (Reuters) - Paramount Skydance Corp is prepared to divest its film distribution joint venture with Universal Pictures to address EU antitrust concerns about its $110 billion acquisition of Warner Bros Discovery, a person familiar with the matter said on Wednesday.

The offer, which follows a meeting with the European Union's antitrust regulators on Tuesday, will be submitted next Tuesday, the person said.

That would extend the European Commission's preliminary July 7 deadline for the review by 10 working days to July 21.

Reuters exclusively reported in February that the deal would easily secure EU approval, with Paramount willing to sell minor channels such as its children's brands if required. This is now off the table as there were no issues on that front, the source said.

Divesting the film distribution joint venture with Universal Pictures could ease worries expressed by European cinema operators.

A spokesperson for Paramount said the company does not comment on ongoing regulatory proceedings.

The deal is also being assessed in a separate proceeding under the EU Foreign Subsidies Regulation, because Saudi Arabia's Public Investment Fund, Abu Dhabi's L'imad Holding Company and the Qatar Investment Authority are bankrolling the bid. Paramount is expected to win unconditional approval for this.

The U.S. Justice Department cleared the acquisition last week, saying it was unlikely to harm competition or consumers. 

California, New York and other U.S. states are preparing a lawsuit to block the deal, sources familiar with the matter have told Reuters.

(Reporting by Foo Yun Chee, editing by Milla Nissi-Prussak)