An $81 billion merger between Warner Bros. Discovery and Paramount has been approved by shareholders, advancing a deal that could significantly impact Hollywood and the broader media industry. The overwhelming majority of Warner Bros. Discovery shareholders voted in favor of selling the entire business to Paramount for $31 per share, totaling nearly $111 billion including debt.
Paramount, owned by Skydance, aims to acquire all of Warner Bros. Discovery, which includes assets like HBO Max, renowned titles such as “Harry Potter,” and CNN. With shareholder approval, the consolidation of these entities under one roof with CBS, “Top Gun,” and Paramount+ is likely to proceed.
Warner Bros. Discovery CEO David Zaslav described the stockholder endorsement as a significant milestone towards finalizing the merger, with Paramount expressing anticipation for the closing in the upcoming months. However, regulatory reviews, including scrutiny from the U.S. Department of Justice, still lie ahead before the deal’s expected completion in the third fiscal quarter.
The path to the merger has been marked by challenges, with Warner initially rejecting Paramount’s advances in favor of a studio and streaming deal with Netflix. After a prolonged battle, Paramount’s revised bid prevailed over Netflix’s offer, leading to Warner’s board backing the Paramount merger.
Despite the approval, concerns linger among industry professionals who fear job losses and reduced options for filmmakers and audiences due to further consolidation. Various advocacy groups, including Jane Fonda’s Committee for the First Amendment, continue to oppose the merger, emphasizing the need for accountability in shaping the media landscape.
The merger would bring together two major studios, Paramount and Warner Bros., along with their respective streaming services and news networks. Executives believe the consolidation will benefit consumers through expanded content libraries and commitments to filmmaking. However, critics remain wary of potential cost-cutting measures, job reductions, and impacts on content diversity.
The deal also faces international scrutiny, including reviews from European regulators, while concerns about political influence and regulatory transparency persist. Share prices of both Paramount and Warner Bros. dipped following the shareholders’ vote, reflecting ongoing market uncertainties surrounding the merger.