Warner Bros shareholders have overwhelmingly approved the $81 billion offer from Paramount to take over the Hollywood giant, a deal that will reshape the media landscape in the U.S.
The Associated Press reported on Thursday that shareholders supported the offer to sell the company's entire business to Paramount for $31 a share, valuing the deal at about $111 billion.
The development doesn't mean that a deal is done, but is another step towards that goal, which still faces regulatory reviews, including from the Department of Justice. Warner has said it expects to close to deal in the third fiscal quarter.
The outlet also noted that thousands of actors, directors and other industry professionals have voiced their opposition to the deal, saying in a letter that the development would lead to job losses and fewer choices for workers and consumers alike.
Supporters argue the deal is necessary for survival against Silicon Valley streamers and that it would preserve American media leadership amid global competition. The Hart-Scott-Rodino waiting period for the Warner bid has already expired, clearing one procedural step.
Paramount Skydance, created from last year's $8 billion merger of Skydance Media and Paramount Global that closed in August 2025, has been aggressively pursuing the deal this year. The company outbid Netflix in February when Warner's board deemed Paramount's revised all-cash offer a "superior proposal."
David Ellison, who serves as chairman and CEO of Paramount Skydance, has positioned the potential combination as a way to create a "next-generation" media powerhouse capable of competing with Netflix, Disney and tech giants. The deal would unite Paramount's CBS, MTV, Nickelodeon and Paramount+ streaming service with Warner's HBO, CNN, Warner Bros. film studio and Discovery channels.
Paramount Skydance operates three main segments: Studios, Direct-to-Consumer (led by Paramount+) and TV Media. The company has raised Paramount+ prices in the U.S. and select international markets in early 2026 to support investment in content and technology. Paramount+ continues to grow subscribers, though it still trails Netflix and Disney+ in scale.
A combined Paramount-Warner entity would command enormous content libraries, including blockbuster franchises from Warner Bros. films, HBO prestige series and Paramount's television assets. Executives have signaled plans to leverage AI for personalized viewing and efficiency while expanding international reach.
Yet challenges persist. The media sector faces cord-cutting, advertising softness and rising programming costs. Paramount Skydance has undertaken cost-cutting, including staff reductions at CBS News, as it seeks profitability in streaming. Trailing 12-month revenue stands near $29 billion with slim profit margins.
