Paramount $110 billion bid may breach SkyShowtime

Paramount’s proposed acquisition of Warner Bros. Discovery could trigger a conflict inside one of its most important European streaming arrangements. Deadline reported on May 15 that Paramount’s planned ownership of HBO Max would likely put the company in breach of its 50-50 SkyShowtime joint venture with Comcast, according to industry sources. Paramount and Warner Bros. Discovery announced the $110 billion deal on February 27, with Paramount saying it expects the transaction to close in the third quarter of 2026. SkyShowtime declined to comment to Deadline, Paramount declined to comment on “speculation,” and Comcast did not respond to Deadline’s request for comment. ### Why would owning HBO Max create a problem for SkyShowtime? SkyShowtime is a joint venture of Comcast and Paramount that operates across more than 20 European markets, according to the company’s newsroom. Deadline reported that the venture’s 50-50 pact means the parents do not compete with SkyShowtime in the territories where the service is available. (deadline.com) HBO Max is active in 21 of SkyShowtime’s 22 markets, including Spain and the Nordic countries, Deadline reported. That overlap matters because Paramount’s ownership of Warner Bros. Discovery would give it control of a streaming service already operating in most of the same countries where SkyShowtime sells subscriptions. (corporate.skyshowtime.com) ### What exactly is SkyShowtime today? SkyShowtime says it is a European streaming service owned by Comcast and Paramount. The company says it combines programming from Paramount, NBCUniversal and Sky Studios, and its corporate materials describe the platform as serving more than 20 European markets under Chief Executive Monty Sarhan. A 2022 SkyShowtime release said the service rolled out across 22 markets in Europe, and Deadline reported this week that it has more than 9 million subscribers. (deadline.com) Deadline also reported last year that Paramount and Comcast had invested at least $1 billion in the venture since launch. ### Didn’t SkyShowtime already carry Warner Bros. (corporate.skyshowtime.com) Discovery programming? SkyShowtime and Warner Bros. Discovery announced a programming acquisition deal in December 2022. SkyShowtime said at the time that HBO Max series would become available exclusively on SkyShowtime across all 22 of its markets beginning in March 2023. (corporate.skyshowtime.com) That earlier licensing arrangement is separate from the ownership issue now raised by Deadline. The reported breach risk centers on Paramount potentially owning HBO Max outright after the Warner Bros. Discovery acquisition closes, not simply licensing Warner titles into SkyShowtime. ### What are people close to the venture saying could happen next? (corporate.skyshowtime.com) Deadline reported that sources close to SkyShowtime said the Warner Bros. Discovery deal had created uncertainty among employees and prompted speculation about changes to the venture’s shareholder structure. One source familiar with the matter told Deadline that Paramount taking over the platform, or at least becoming the dominant partner, was increasingly seen as a likely outcome. (deadline.com) Mike Cavanagh, Comcast’s co-CEO, said in March that Peacock was focused on the U.S. rather than global expansion, according to trade reports and Comcast’s shareholder materials describing a media strategy centered on NBC, Peacock, Telemundo and Bravo. That stance is relevant because Comcast has not launched Peacock broadly as a standalone international service in SkyShowtime territories. (deadline.com) ### Where does this leave Paramount’s broader merger process? Paramount said on February 27 that it would pay $31.00 per share in cash for Warner Bros. Discovery and that the transaction values the company at an enterprise value of $110 billion. Paramount said the deal had been unanimously approved by both boards and was subject to regulatory clearances and Warner Bros. Discovery shareholder approval. (hollywoodreporter.com) Deadline reported this week that the pending merger was already hanging over the Los Angeles Screenings market and Warner Bros. Discovery’s upfront presentation. Paramount has said it expects the acquisition to close in the third quarter of 2026, which is the next major milestone for any resolution involving SkyShowtime, Comcast and the future of HBO Max in Europe. (msn.com) (paramount.com)