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Shareholders of Warner Bros. Discovery voted Thursday (April 23) to approve a $110 billion merger with Paramount Skydance, marking a major step toward uniting two of Hollywood’s most famous studios under one corporate roof. The deal, which would bring together the Warner Bros. film studio, HBO Max, CNN, and Paramount’s legendary properties, is seen as one of the biggest shakeups in the American entertainment industry in years.
The “yes” vote from Warner Bros. Discovery shareholders was widely expected after both companies’ boards unanimously endorsed the merger. Paramount Skydance’s offer values Warner Bros. Discovery at around $77 billion, paying $31 per share, and includes a vast portfolio of cable channels and streaming platforms. Combined, the two companies would own an extensive library of content, from ‘The Godfather’ and ‘SpongeBob Squarepants’ to ‘Casablanca’ and the ‘Harry Potter’ universe.
However, the deal still faces several hurdles before it can be finalized. The merger must be reviewed and approved by antitrust regulators at the Department of Justice and in Europe. California Attorney General Rob Bonta is also investigating the deal for possible antitrust violations. Democratic lawmakers including Senators Elizabeth Warren, Cory Booker, and Chuck Schumer have voiced opposition, warning the deal could further consolidate the media industry and limit creative choices.
More than 4,000 actors, directors, screenwriters, and producers have signed an open letter expressing concern that the merger will reduce competition and harm an industry “already under severe strain, in large part due to prior waves of consolidation." Some Hollywood stars, including Jane Fonda and Mark Ruffalo, have posted videos urging the deal to be blocked, citing fears of fewer jobs and less variety for audiences.
Paramount Skydance CEO David Ellison, son of Oracle co-founder Larry Ellison and a known ally of President Donald Trump, has promised that the combined company will release at least 30 movies a year and keep films in theaters for at least 45 days. He insists the merger will “strengthen both consumer choice and competition.” Movie producer Jerry Bruckheimer expressed faith that Ellison’s promises would be kept, stating, “The train has left the station. It’s going to get done.”
The current Warner Bros. Discovery CEO https://www.foxbusiness.com/media/warner-bros-discovery-shareholders-approve-paramount-skydance-deal called the shareholder vote “another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
If approved, Paramount Skydance aims to close the transaction by September 30.