A proposed $81 billion merger between Warner Bros. Discovery and Paramount has moved closer to fruition after receiving overwhelming approval from Warner shareholders, a deal poised to significantly reshape Hollywood and the broader media landscape.
According to a preliminary vote count released on Thursday, the vast majority of Warner Bros. Discovery shareholders endorsed the sale of the entire business to Paramount for $31 a share. Including existing debt, the transaction is valued at nearly $111 billion.
Should the acquisition proceed, Skydance-owned Paramount would absorb Warner’s extensive portfolio, bringing HBO Max, iconic franchises like "Harry Potter," and even CNN under the same corporate umbrella as CBS, the "Top Gun" film series, and the Paramount+ streaming service. The shareholder greenlight marks a crucial step toward this consolidation.
However, the deal still faces ongoing regulatory scrutiny, including a review by the U.S. Department of Justice. Warner has indicated an expected closure sometime in the third fiscal quarter.
Paramount’s pursuit of Warner has been fraught with challenges.
While Warner’s board now backs the Paramount merger, it was initially reluctant. Late last year, Warner rebuffed Paramount’s advances, instead favoring a $72 billion studio and streaming agreement with Netflix.
Paramount subsequently bypassed the board, launching a hostile bid directly to shareholders to acquire the entire company, including the cable assets Netflix had declined.
A public battle ensued for months as the three companies vied for the best offer. Warner’s board consistently supported Netflix’s proposal until Paramount ultimately increased its bid, leading Netflix to abruptly withdraw from the race.
While the corporate drama may have subsided, its implications are far-reaching. Thousands of industry professionals, including actors, directors, and writers, have expressed "unequivocal opposition" to the deal, warning in a letter that further consolidation will result in job losses and fewer creative choices for filmmakers and audiences alike.
Lawmakers are also voicing concerns. Democratic Senator Cory Booker stated during a recent Washington hearing on the merger, "What is at stake is clearly not just a corporate deal, but who controls news, who controls entertainment, who controls storytelling… It’s about the concentration and consolidation of cultural power."
The merger would unite two of Hollywood’s remaining five legacy studios, combine major streaming platforms Paramount+ and HBO Max, and bring together prominent American TV news outlets CBS and CNN, alongside numerous other brands and entertainment networks.
Company executives argue the merger will benefit consumers by offering access to larger content libraries, particularly if HBO Max and Paramount+ merge into a single streaming service. Paramount CEO David Ellison has sought to reassure filmmakers with a guaranteed 45-day theatrical window and a commitment to release 30 movies annually between Paramount and Warner, which he insists will operate as standalone entities within the combined company. "I love cinema and I love film," Ellison said at CinemaCon last week. "You can count on our complete commitment."
Yet, the new ownership is also expected to implement cost-cutting measures. Regulatory filings have already indicated potential layoffs and the downsizing of overlapping operations. Critics remain skeptical about consumer benefits, cautioning against potential streaming price hikes and a reduction in content diversity over time.
Concerns also extend to the news sector. Since coming under Skydance ownership less than a year ago, Paramount-owned CBS has undergone significant editorial shifts, notably with the appointment of Free Press founder Bari Weiss as CBS News editor-in-chief. Many anticipate similar changes at CNN, which has long drawn criticism from Donald Trump, should the Warner takeover proceed.
Further questions regarding political influence have emerged. While the Justice Department and company leadership maintain politics will not factor into the regulatory process, Donald Trump has publicly commented on Warner’s future, despite backtracking on his previously suggested personal involvement. Trump also maintains a close relationship with the Ellison family, particularly billionaire Oracle founder Larry Ellison, who is contributing billions to back his son’s company’s bid.
Meanwhile, Paramount has secured funding from several sovereign investment funds, including Saudi Arabia’s Public Investment Fund, as well as funds from the United Arab Emirates and Qatar, according to regulatory filings. However, these investors will not possess voting rights in a future Paramount-Warner entity, the filings noted. Paramount has not publicly disclosed the exact amount of its contributions.
Other nations, including European regulators, are scrutinizing the deal, and U.S. states may also challenge it. California Attorney General Rob Bonta has been particularly vocal, confirming his state is investigating the transaction.
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