In a move that could reshape the American entertainment industry, shareholders of Warner Bros. Discovery overwhelmingly approved the sale of the entire company to Paramount for $31 a share. The deal, which includes debt, is valued at more than $111 billion and is considered one of the largest in Hollywood history.
Paramount is seeking to acquire all of the company’s assets, including the HBO Max streaming network, iconic franchises such as “Harry Potter” and the CNN news network. The shareholder vote brings the deal closer to completion, but regulatory hurdles remain.
The path to the agreement was fraught with obstacles. Warner initially rejected Paramount’s offer in favor of a $72 billion streaming and studio deal with Netflix. In response, Paramount turned directly to shareholders with a hostile tender offer that also included cable assets Netflix did not want. After months of a public battle, Paramount raised its bid, and Netflix withdrew from the competition.
Thousands of actors, directors, writers and other industry figures voiced “unequivocal opposition” to the deal, arguing that further consolidation would lead to mass layoffs and reduce options for creators and audiences alike. Criticism was also heard on Capitol Hill. Democratic Sen. Cory Booker said at a hearing in Washington, “What is at stake is not just a corporate transaction, but the question of control over news, entertainment and the cultural narrative.”
Management assurances — and political questions
Paramount CEO David Ellison sought to reassure the film community, pledging to produce 30 films a year. “I love cinema,” he said at the CinemaCon conference. “You can trust our full commitment.” However, the company also announced plans to cut costs, including layoffs.
The deal is also shadowed by questions about political influence. President Donald Trump has close ties to the Ellison family, particularly Larry Ellison, the founder of Oracle and David Ellison’s father, who is investing billions in the deal. Trump himself has publicly expressed interest in Warner’s fate.
Meanwhile, Paramount has secured financing from sovereign wealth funds, including Saudi Arabia’s Public Investment Fund, as well as funds from the United Arab Emirates and Qatar, though those entities will not hold voting rights in the combined company.
The deal remains under review by the U.S. Department of Justice, European regulators and authorities in several countries. California Attorney General Rob Bonta has announced that the state is investigating the transaction. Warner said it expects to close the deal in the third quarter of its fiscal year.