Paramount has confirmed its intention to exit the United International Pictures (UIP) distribution joint venture with Universal.

This move is a direct response to a request from the European Commission's antitrust watchdog and is a condition for securing EU approval of Paramount's proposed $111 billion mega-merger with Warner Bros.

Discovery.

This development is significant as it addresses a key regulatory hurdle for the substantial media consolidation.

The European Commission announced on Wednesday that a regulatory filing affirming Paramount's commitment to withdraw from UIP has been submitted.

Consequently, the provisional deadline for the Commission to reach a decision on the merger has been extended from July 7 to July 22.

UIP, established in 1981 and based in London, has seen its operations scaled back over the years.

It currently functions as a distributor in several European territories, including Denmark, Greece, Croatia, Hungary, Norway, Poland, and Sweden.

A Paramount spokesperson stated, "We can confirm that today we have submitted a remedy to the European Commission." The company expressed confidence that this remedy comprehensively addresses any concerns raised in the Commission's preliminary assessment, paving the way for timely clearance.

Paramount looks forward to continuing constructive engagement with the European Commission and other regulatory bodies involved in the review process.

The proposed merger, initially announced in February, aims to combine Paramount assets such as CBS, CBS News, Paramount Pictures, and Paramount+ with Warner Bros.

Discovery's HBO, HBO Max, Warner Bros.

Pictures, CNN, TNT, TBS, and HGTV.

This EU review represents one of the final major regulatory obstacles for the deal.

The merger is also under regulatory scrutiny in the U.K., where intervention from the British government is anticipated.

The U.K.'s Secretary of State for Culture, Media and Sport, Lisa Nandy, has voiced concerns regarding the plurality of media control in the U.K.

The merger would bring U.K.

broadcaster Channel 5 and TNT Sports under the same ownership, alongside streamers Paramount+ and the recently launched HBO Max.

Funding for the merger includes a $24 billion investment from Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority (QIA), which has not been cited as an issue by either the EU or the U.K.