Photo via Fast Company
Warner Bros. Discovery shareholders voted overwhelmingly Thursday to approve Paramount's acquisition of the entire company for $31 per share, a transaction valued at approximately $111 billion including debt. The approval represents a significant milestone for what would be one of the entertainment industry's largest consolidations, combining two of Hollywood's five remaining major studios along with major streaming platforms, television networks, and news operations.
While the shareholder vote is a critical step forward, the deal still faces scrutiny from federal regulators and the Justice Department before an expected close in the third quarter. The path to this approval has been contentious, with Warner's board initially backing a competing Netflix offer before Paramount mounted a hostile bid and ultimately increased its financial offer to win out. The deal would unite HBO Max and Paramount+ streaming services, CBS and CNN news operations, and franchises ranging from 'Harry Potter' to 'Top Gun' under single ownership.
The merger has generated significant opposition from industry stakeholders and policy advocates. According to Fast Company, thousands of entertainment professionals have publicly opposed the deal, citing concerns over job losses and reduced creative diversity. Lawmakers, including Senator Cory Booker, have raised questions about media consolidation and who controls storytelling in America, while California's attorney general has announced his state is investigating the transaction.
Paramount's parent company, Skydance, is funding the acquisition with support from sovereign wealth funds in Saudi Arabia, the UAE, and Qatar, though these investors will hold no voting rights. The deal's financial backing also involves substantial capital from billionaire Oracle founder Larry Ellison, father of Paramount CEO David Ellison. Company leadership has promised to maintain both studios as standalone operations and commit to theatrical releases, though regulatory filings indicate anticipated cost cuts and job reductions from consolidating overlapping functions.