Warner Bros. shareholders approve Paramount's $81 billion takeover
Kyiv • UNN
Warner Bros. Discovery shareholders have approved the sale of Paramount's business for $31 per share. The deal will merge studios, streaming services, and the CNN and CBS channels.
The $81 billion mega-merger of Warner and Paramount has received shareholder approval, bringing the deal, which could fundamentally change Hollywood and the media landscape as a whole, closer to completion, UNN reports with reference to AP.
Details
According to preliminary voting results on Thursday, an overwhelming majority of Warner Bros. Discovery shareholders voted in favor of selling the entire company's business to Paramount for $31 per share, the company announced. Including debt, the deal is valued at nearly $111 billion.
Paramount, owned by Skydance, wants to buy all of Warner. This means that HBO Max, iconic films like "Harry Potter," and even CNN could soon be under one roof with CBS, "Top Gun," and the Paramount+ streaming service. The company's shareholder approval increases the possibility of this becoming a reality.
The merger will combine two of the five remaining studios in Hollywood. It will also bring together two major streaming platforms - Paramount+ and HBO Max - and two prominent names in the American television news landscape - CBS and CNN - as well as a host of other brands and entertainment networks.
Company executives argue that this will be good news for consumers, who, they say, will have access to larger content libraries, especially if HBO Max and Paramount+ become one streaming service. And Paramount CEO David Ellison tried to reassure filmmakers by guaranteeing a 45-day theatrical release and setting a goal of releasing 30 films a year jointly by Paramount and Warner, which, he said, will remain independent ventures within the combined company.
"I love movies and I love films," Ellison said at CinemaCon last week. "You can count on our full commitment."
Then comes the news. Since coming under Skydance's control less than a year ago, Paramount-owned CBS has already undergone significant editorial changes, including the appointment of Free Press founder Bari Weiss as editor-in-chief of CBS News. If the Warner acquisition goes through, many expect similar changes at CNN, which has long been a source of dissatisfaction for US President Donald Trump.
David Zaslav, CEO of Warner Bros. Discovery, said in a statement that shareholder approval marks "another important milestone on the path to completing this historic deal." Paramount added that it looks forward to closing the deal in the coming months and "realizing a next-generation media and entertainment company."
This is not yet a final decision. The acquisition is still undergoing regulatory review. Many critics are sounding the alarm about further consolidation in an industry already controlled by just a few major players, and are calling for the merger to be blocked - if not by the Trump administration, which seems unlikely, then perhaps at the state level in the US or through lawsuits.
Meanwhile, Warner shareholders on Thursday rejected a separate measure that would have provided payments to company executives after the merger.
Paramount shares fell nearly 6% after Thursday's vote, and Warner Bros. shares also declined.