Warner Bros shareholders approve acquisition by Paramount Pictures

Warner Bros Discovery Shareholders Approve Merger with Paramount Skydance

Shareholders of Warner Bros Discovery have overwhelmingly approved the company’s proposed $110 billion merger with Paramount Skydance. The deal, valued at nearly $111 billion including debt, is expected to be completed in the third quarter of this year.

According to a preliminary vote count, the majority of shareholders voted in favor of selling the entire business to Paramount for $31 per share. This decision comes after a months-long bidding war between Paramount and Netflix, with Paramount ultimately emerging as the winner.

The merger has been met with opposition from various stakeholders, including actors, filmmakers, theatre groups, and consumers who have expressed concerns about the potential impact on the creative community, theatre owners, and moviegoers. However, a spokesperson for Paramount stated that shareholder approval marks an important milestone towards completing the acquisition of Warner Bros Discovery.

Regulatory authorities in both Washington and London are expected to examine the merger’s impact on competition. The US Department of Justice has sent subpoenas seeking information on how the merger would affect studio output, content rights, streaming competition, and movie theatres. Paramount has promised theatre owners that it will release at least 30 films a year if regulators clear the deal.

The merger is expected to reduce the number of major US film studios to four and lead to fewer jobs, creative opportunities, and less choice for consumers. Over 4,000 film industry professionals and consumers have signed an open letter calling on California Attorney General Rob Bonta to consider taking legal action to block the deal.

Source: Al Jazeera