An enormous $81 billion merger between Warner and Paramount in the United States has been given the green light by shareholders, advancing a deal that could significantly transform the Hollywood and broader media industry.
In a recent preliminary vote, the majority of Warner Bros. Discovery shareholders favored selling the entire business to Paramount at $31 per share, bringing the total deal value to nearly $111 billion including debt.
Paramount, owned by Skydance, seeks to acquire all of Warner, which would bring together properties like HBO Max, beloved franchises such as “Harry Potter,” and news giant CNN under the same umbrella as CBS, “Top Gun,” and the Paramount+ streaming service. The shareholders’ approval boosts the likelihood of this consolidation becoming a reality.
David Zaslav, CEO of Warner Bros. Discovery, stated that the stockholder endorsement represents a significant step toward finalizing this historic merger. Paramount expressed eagerness to complete the deal in the upcoming months and create a cutting-edge media and entertainment entity.
Despite the shareholder approval, the acquisition still awaits regulatory scrutiny, including from the U.S. Department of Justice, with Warner aiming to finalize the transaction in the third fiscal quarter.
Although Warner initially rejected Paramount’s advances in favor of a $72 billion deal with Netflix, the tables turned when Paramount offered a more lucrative proposal, leading Netflix to exit the race. The public battle between the companies has ended, but concerns persist among industry professionals about potential job losses and limited options for filmmakers and audiences.
Various groups, including Jane Fonda’s Committee for the First Amendment, have expressed opposition to the merger, emphasizing the need for accountability in shaping the media landscape. State authorities, such as California Attorney General Rob Bonta, have launched investigations into the transaction to address antitrust concerns.
The merger would merge two of Hollywood’s key legacy studios, combining Paramount+ and HBO Max into one streaming service and uniting CBS and CNN along with other entertainment networks. Executives argue that consumers will benefit from expanded content libraries, though critics warn of cost-cutting measures and potential drawbacks for viewers.
As the regulatory process unfolds, questions about political influences and editorial changes loom over the deal. While assurances have been made regarding the apolitical nature of the process, ties between key figures and political entities raise concerns about impartiality.
Paramount’s financing from sovereign investment funds has also drawn attention, with various countries scrutinizing the deal, including European regulators. Following the shareholders’ vote, shares of both Paramount and Warner Bros. experienced declines.