Paramount to Exit UIP as Part of EU Conditions for Warner Bros. Discovery Merger
Paramount has agreed to exit United International Pictures (UIP) as part of the European Commission's conditions for approving its merger with Warner Bros. Discovery, bringing an end to a partnership that has been part of the European cinema landscape for 44 years.
The European Commission ruled that Paramount must unwind its 50% stake in UIP within 13 months of completing the merger. The requirement was introduced as part of the Commission's efforts to address competition concerns related to the transaction.
Founded in 1981, UIP is a joint venture between Paramount Pictures and Universal Pictures that distributes films across around 100 international territories. Over the years, the company has become one of the most established theatrical distributors in Europe.
Neither Paramount nor Universal Pictures has commented on how the separation will be carried out. UIP also declined to comment on the European Commission's decision.
Once Paramount exits the joint venture, it will need to establish alternative distribution arrangements for the territories previously served by UIP. Paramount has not yet announced how it will structure its theatrical distribution across the affected European territories following its departure from UIP.
The decision also raises questions about the future of UIP and its workforce. The company currently employs around 200 people and, following Paramount's departure, is expected to handle a smaller number of film releases unless new distribution partnerships are formed.
According to its latest accounts filed with the UK's Companies House, UIP reported sales of nearly £198 million ($263 million) in 2024 and recorded a pre-tax profit of £12.2 million.
Stewart Till, who served as UIP's chief executive until 2006, described Paramount's exit as the end of an era for a company that combined Hollywood studios with local decision-making across European markets. He also noted that Paramount will now have to establish new distribution arrangements in territories previously managed by UIP.
While the European Commission accepted Paramount's exit from UIP as part of the merger remedies, some industry organizations believe broader concerns remain.
The International Union of Cinemas (UNIC) said the remedy addresses one structural issue but does not resolve wider concerns about theatrical distribution arrangements outside UIP territories. UNIC also said it had advocated for safeguards around theatrical exclusivity, release windows, and maintaining a strong pipeline of films for cinemas across Europe.
The Balanced Economy Project, a UK-based non-profit organization focused on competition policy, also questioned whether the remedy would be sufficient. The organization argued that cinemas would still face one fewer independent major studio and that broadcasters, streaming platforms, producers, and creative suppliers could experience reduced competition following the merger.
Paramount CEO David Ellison has stated that the combined company intends to release more than 30 theatrical films each year while maintaining a minimum exclusive theatrical window of 45 days. However, the merger still faces legal challenges in the United States, where a lawsuit filed by 12 state attorneys general argues that the transaction could reduce competition in theatrical film distribution.
Paramount's departure from UIP marks the end of one of Europe's longest-running theatrical distribution partnerships, while discussions over the long-term impact of the Warner Bros. Discovery merger on competition within the European cinema industry continue.
