Warner Bros. Discovery shareholders have approved a $110 billion merger with Paramount Skydance, marking a significant step in reshaping the media landscape. The deal still requires approval from the U.S. Department of Justice and European competition regulators before it can be finalized by September.
Key Takeaways
Warner Bros. Discovery shareholders have approved an $110 billion merger with Paramount Skydance, pending regulatory approvals expected by September. The deal would create a media giant controlling major assets like CNN and HBO, sparking industry concerns about job losses and reduced creative opportunities.
- Warner Bros. Discovery shareholders approve $110B merger with Paramount Skydance
- Deal requires U.S. Department of Justice and European competition regulator approvals by September
- Merged entity would control major media assets including CNN, HBO, and Warner Bros. studios
- Over 4,000 Hollywood professionals oppose the deal citing job loss concerns
- David Ellison promises to release 30 films annually under combined studios
The merger would create a new Hollywood giant, combining Warner Bros.' assets like HBO Max, CNN, TBS, Discovery Channel, and its film studio with Paramount's CBS network and Melrose Avenue film studio. The companies expect to close the deal in the third quarter of 2026.
Paramount Chairman David Ellison's proposal offers $31 per share for Warner Bros., a significant premium over its stock price a year ago when it was trading at just $8 per share. This offer ultimately triumphed over a competing bid from Netflix, which withdrew in late February after Ellison's father, Oracle billionaire Larry Ellison, agreed to guarantee the financing of his son's deal.
The merger has sparked widespread concern among Hollywood professionals. Over 4,000 actors, directors, and writers signed an open letter opposing the deal, citing fears of job losses and reduced creative opportunities. The signatories include notable figures like Emma Thompson, Ben Stiller, Javier Bardem, Bryan Cranston, Ted Danson, J.J. Abrams, Jane Fonda, and Kristen Stewart.
David Ellison has attempted to allay these concerns by promising to release 30 films annually under the combined studios. This pledge was welcomed by AMC CEO Adam Aron but met with skepticism from Cinema United President Michael O'Leary about its impact on movie theaters.
The merger also faces political and regulatory scrutiny. California Attorney General Rob Bonta is investigating potential antitrust violations, and U.S. Sens. Elizabeth Warren, Chuck Schumer, and Cory Booker have opposed the deal. The Ellisons' close ties to President Trump have further fueled debate about potential ideological shifts in media content.
Shareholders expressed discontent with Warner Chief Executive David Zaslav's proposed $887 million golden parachute, which they symbolically rejected in a non-binding vote. Despite this, the board is expected to pay him the amount anyway.
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