Warner Bros. Discovery shareholders voted to approve the proposed $111 billion takeover of the company by Paramount Skydance, the media giant announced Thursday, advancing plans for the merger that will still need federal regulatory approval.
“We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery Board of Directors, said in a statement following the vote. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
The proposed deal would unite two major media companies under one corporate structure with broad control over film and television production and distribution. Warner Bros. officials said they expected the deal to close in the third quarter of this year, “subject to customary closing conditions, including regulatory clearances.”
“Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” David Zaslav, president/CEO of Warner Bros. Discovery, said in a statement. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders. We will continue to work with Paramount to complete the remaining steps in this process that will create a leading, next-generation media and entertainment company.”
The proposed merger has generated opposition from critics citing anti-trust concerns and fearing job losses in an industry still recovering from the COVID-19 pandemic and labor strife.
Earlier this month, more than 1,000 actors, filmmakers and other industry professionals, including Joaquin Phoenix, Ben Stiller, Rosie O’Donnell and Noah Wyle, issued an open letter opposing the deal, warning it could reduce competition and harm the entertainment industry.
Signatories also included Jason Bateman, Adam McKay, Alan Cumming, Bryan Cranston, Glenn Close, Lin-Manuel Miranda and Mark Ruffalo, among others.
“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good,” the letter states. “The integrity, independence, and diversity of our industry would be grievously compromised. Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement.”
Signatories said combining the two companies could result in fewer productions and job losses across the industry, particularly for crew members and other behind-the-scenes workers.
Paramount defended the proposed merger, saying it would expand opportunities for creators and strengthen the industry.
“We hear and understand the concerns that some in our creative community have raised and respect the commitment to protecting and expanding creativity,” the company said in a statement responding to the letter.
“This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers, and bring stories to audiences at a truly global scale — while strengthening competition by ensuring multiple scaled players are investing in creative talent,” the statement continued.
The proposed merger is subject to regulatory approval and could face scrutiny from federal antitrust officials.