Warner Bros Shareholders Vote on Paramount Takeover

Warner Bros and Paramount’s massive $81 billion merger is a go. According to a preliminary vote count, a large majority of Warner Bros. Discovery shareholders gave the okay to Paramount’s purchase of the entire Warner Bros. business for $31 a share. When factoring in debt, the deal totals close to $111 billion.

Skydance-owned Paramount is looking to acquire all of Warner, including popular favorites like HBO Max, the “Harry Potter” franchise, and CNN. If the deal goes through, they could end up under the same roof as CBS, “Top Gun,” and the Paramount+ streaming service. The recent approval by shareholders gives additional weight to the likelihood of the merger becoming a reality.

However, regulatory approval is still pending, with the U.S. Department of Justice set to review the deal. Warner anticipates closing the agreement in the third fiscal quarter. This process has not been without complications. Initially, Warner rejected Paramount’s advances, opting instead for a $72 billion studio and streaming agreement with Netflix last year. Paramount responded by making a hostile bid to acquire the entire company, including the cable business that Netflix had turned down.

After months of public back-and-forth between the three companies over who had the superior offer, Paramount eventually increased its bid, causing Netflix to withdraw rather than escalate the conflict. Despite the drama subsiding, various industry professionals have vocalized their opposition to the merger. Concerns have been raised about potential job losses and decreased options for filmmakers and moviegoers due to the consolidation.

Some lawmakers have also expressed apprehension regarding the merger’s far-reaching effects. Democratic Sen. Cory Booker emphasized the cultural implications, highlighting concerns over the concentration and consolidation of power in news, entertainment, and storytelling during a recent hearing in Washington.

Should the merger proceed, it will unite two of Hollywood’s last-standing legacy studios, potentially ushering in a new era in the entertainment industry.