00:01The European Union has approved Paramount's $110 billion takeover of Warner Bros. Discovery.
00:08However, the approval came with certain conditions.
00:12Brussels said the deal is unlikely to harm competition in film production,
00:16but still the EU has certain concerns over the deal's impact on film distribution in Europe.
00:22Therefore, the Commission has said Paramount must agree to end its stake in United International Pictures
00:27in the European Economic Area.
00:30European regulators said Paramount must not for 10 years enter into any agreement with Universal
00:35to jointly distribute films in this area.
00:39The deal still faces legal hurdles in the United States
00:43after federal judge in California temporarily paused the merger this week.
00:47The planned merger has sparked significant opposition,
00:50with critics warning it could fundamentally reshape Hollywood.
00:53If completed, it would reduce the number of major US film studios to four.
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