An $81 billion merger between Warner Bros. Discovery and Paramount has been approved by shareholders, moving the deal closer to completion. The majority of Warner Bros. Discovery shareholders voted to sell the business to Paramount for $31 a share, totaling around $111 billion including debt.
Paramount, owned by Skydance, aims to acquire all of Warner, which would bring together assets like HBO Max, popular titles such as “Harry Potter,” and CNN under the same umbrella as CBS, “Top Gun,” and the Paramount+ streaming service. Approval from shareholders increases the likelihood of this merger becoming a reality.
Warner Bros. Discovery CEO David Zaslav expressed that shareholder approval is a significant step towards finalizing the transaction, while Paramount looks forward to closing the deal in the coming months to establish a next-generation media and entertainment entity.
However, the acquisition is not yet finalized as it still requires regulatory approvals, including from the U.S. Department of Justice. Warner anticipates completing the deal in the third fiscal quarter.
The path to the merger has faced obstacles, with Warner initially rejecting Paramount’s advances in favor of a deal with Netflix. After a public battle, Paramount increased its offer, leading to Netflix withdrawing from the competition.
While the corporate drama seems to have subsided, concerns persist among industry professionals regarding job losses and reduced options for filmmakers and audiences due to further consolidation. Various groups, including Jane Fonda’s Committee for the First Amendment, continue to oppose the merger.
The merger would unite two major Hollywood studios, combining Paramount+ and HBO Max into one streaming service. Executives argue that this consolidation will benefit consumers with broader content libraries and commitments to theatrical releases and film production.
Despite promises of commitment to cinema, critics fear potential layoffs, operational streamlining, higher streaming prices, and decreased content diversity. Additionally, editorial changes are expected, following Paramount’s previous shifts under Skydance ownership, as seen with CBS News.
Political implications have also arisen, with questions surrounding potential influence and investments from sovereign funds in the deal. Regulatory scrutiny extends beyond the U.S., with European authorities also reviewing the merger.
Following the shareholder vote, Paramount and Warner Bros. stocks experienced a decline.