Warner Bros. Discovery (NASDAQ:WBD) shares moved higher on Wednesday after a report indicated that European Union regulators are preparing to approve Paramount’s proposed acquisition of the media and entertainment company.
The stock rose 1.25% as investors reacted positively to signs that the transaction may be moving closer to securing a key regulatory clearance.
EU Approval Reportedly Near
According to a report from the Financial Times, the European Commission is expected to give the deal its approval, citing two individuals familiar with the discussions.
The report said the regulator is prepared to clear the transaction provided that Paramount agrees to a number of commitments designed to address competition concerns.
While approval is reportedly within reach, negotiations over the final conditions remain ongoing.
Remedies Still Under Discussion
The Financial Times reported that representatives from Paramount and the European Commission continued discussions following a meeting held on Tuesday.
The precise remedies that could accompany the approval have not yet been finalized.
One potential condition under consideration would require Paramount to exit its joint venture with Universal Pictures, according to the report.
Such measures are commonly used by regulators to address competition issues and facilitate approval of large corporate transactions.
Companies Remain Silent on Regulatory Process
Neither Paramount nor European regulators provided detailed comments regarding the status of the review.
A spokesperson for Paramount told the Financial Times that the company does not comment on active regulatory proceedings.
Meanwhile, a spokesperson for the European Commission declined to comment on the reported discussions.
Investors Focus on Deal Progress
The report marks another potentially important milestone for the proposed acquisition, which remains subject to regulatory review in multiple jurisdictions.
Investors have been closely monitoring developments surrounding the transaction, as regulatory approvals are viewed as one of the final major hurdles before the deal can proceed.
The latest report suggesting that European regulators are willing to approve the acquisition, subject to remedies, helped support sentiment toward Warner Bros. Discovery shares during Wednesday’s trading session.