New Delhi, July 2 -- Paramount is giving up a piece of Hollywood history it barely uses anymore to keep a $111 billion deal alive.

Paramount Skydance has agreed to exit United International Pictures, its decades-old film distribution joint venture with Universal, according to reports from Variety and The Hollywood Reporter, after European antitrust regulators demanded the divestment as a condition for approving Paramount's takeover of Warner Bros. Discovery. The European Commission confirmed Wednesday that Paramount's filing committing to the exit had been submitted, and pushed its own decision deadline back from July 7 to July 22 to work through it.

The concession is the clearest sign yet of how many separate approvals this single merg...