Warner Bros. Discovery Shareholders Approve $110 Billion Merger with Paramount Skydance

Shareholders of Warner Bros. Discovery have approved a $110 billion merger with Paramount Skydance, a pivotal move toward uniting two of Hollywood's major studios. The deal, which includes debt, is expected to close in the third quarter of 2026, pending regulatory approvals.

Under the agreement, Warner Bros. Discovery shareholders will receive $31 per share in cash. The merger aims to combine extensive entertainment portfolios, including HBO Max, CNN, and the 'Harry Potter' franchise from Warner Bros., with Paramount's assets such as Paramount+, CBS, and 'Top Gun'.

David Ellison, CEO of Paramount Skydance, expressed confidence in the merger's potential to create a leading media and entertainment company. He stated, 'We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers.'

Despite shareholder approval, the merger faces regulatory scrutiny from the U.S. Department of Justice and international authorities. Concerns have been raised about potential job losses and reduced content diversity. Over 4,000 industry professionals, including actors and directors, have signed an open letter opposing the merger, citing fears of diminished competition and creative opportunities.

The merger is financed through $47 billion in equity, supported by the Ellison family and RedBird Capital Partners, and $49 billion in debt commitments from a consortium of lenders. Paramount plans to maintain both studios as standalone entities while expanding film production, with a commitment to releasing over 30 films annually.