Brussels, 23 July 2026: The International Union of Cinemas, the European cinema trade association across 39 territories, has reacted to the European Commission’s decision to clear Paramount Skydance’s proposed acquisition of Warner Bros. Discovery (WBD) – on condition that the combined studio addresses a key competition concern.
The Commission’s go-ahead for the $110.9 billion deal requires Paramount to divest its stake in United International Pictures (UIP), a film distribution venture it currently jointly owns with Universal Pictures. The decision, published yesterday evening, requires remedies linked to theatrical distribution.
“UNIC welcomes the Commission's decision to require the divestment of Paramount's stake in UIP and additional requirements. While it addresses an important competition concern, we strongly believe that the Commission could and should have gone further with its conditions for the merger’s approval,” said UNIC CEO Laura Houlgatte. “Our sector raised numerous concerns with its competition department about the proposed deal, and the Commission’s findings don’t reflect that bigger picture. It has based its decision on too narrow a scope.
“We regret that the decision does not, for example, address similar risks arising from theatrical distribution arrangements outside the UIP territories, nor does it extend to remedies addressing theatrical windows, film diversity, preservation of film output and production pipelines, contractual practices and access to back catalogues.
“Given that the transaction continues to face legal challenges based on such factors in the United States, it is clear that these broader concerns about the merger remain unresolved and unanswered. UNIC will keep a close eye on developments in the US and any potential consequences for Europe.”
UNIC, together with the cinema operators and associations it represents, provided the Commission with extensive evidence about how the merger will negatively impact the sector and called for substantial remedies.
Houlgatte added that UNIC was also disappointed that the European Media Board, an independent advisory body, had not examined the wider implications of the transaction for media pluralism, cultural diversity and the audiovisual market.
The European Commission’s decision accepts that the transaction would have meant Warner’s films would also be distributed via UIP and this would have led to worse rental and distribution terms for cinema operators, ultimately disadvantaging consumers.
To address this, Paramount has committed to terminate its stake in UIP in the European Economic Area (EEA) within 13 months from the closing of the merger transaction. In addition, for a period of ten years, Paramount will not enter into any agreement or understanding with Universal to jointly co-distribute films in the EEA; shift the distribution of Warner's films from Warner's existing distributor to the theatrical distributor used by Paramount, where that distributor also distributes Universal's or Disney's films in all UIP countries in the EEA; and in the UIP countries in the EEA where Paramount and Universal do not share the same distributor, shift the distribution of Paramount's films from Paramount's existing distributor to the theatrical distributor used by Warner, where that distributor also distributes Universal's or Disney's films.
The Commission’s decision comes against the backdrop of a positive and pivotal moment for the cinema sector.
The first half of 2026 saw the highest-grossing period for the EMEA region since 2019, with box office revenue up 21% year-on-year – the strongest performance worldwide. This momentum reflects both the strength of a consistent and diverse film slate and the significant investments made by cinema operators to enhance the cinema-going experience.
It demonstrates that audiences continue to embrace the big screen experience when offered compelling films in a high-quality cinema. It is essential that this positive momentum is sustained – and not disrupted – by the commercial decisions that follow this merger.
Against this backdrop, the public pledges made by Paramount Skydance CEO David Ellison in open letters to the industry and in April at CinemaCon in Las Vegas take on particular significance. Mr Ellison has publicly pledged that the merged company will release at least 30 theatrical feature films each year, ensure that every film receives a full theatrical release, preserve national regulations where they exist or a minimum 45-day theatrical window before films move to premium video-on-demand (PVOD), and maintain a minimum 90-day window before films become available on subscription streaming services (SVOD).
With the transaction now cleared in the EEA, UNIC – and the European cinema sector – expect these commitments to be reflected consistently in the merged company's long-term strategy and day-to-day commercial decisions.
In light of the Commission’s decision, UNIC will urge Paramount to ensure European audiences continue to enjoy films in the best conditions – on the Big Screen.
About UNIC: The International Union of Cinemas (UNIC) is the European cinema trade association, representing national cinema associations and cinema operators across 39 territories in Europe and beyond. You can find the list of members and territories here.