Warner Bros. Discovery (WBD) shareholders have overwhelmingly voted to approve an $81 billion takeover by Paramount Skydance, a deal valued at nearly $111 billion when including debt. This landmark merger follows a months-long bidding war where Paramount ultimately outmanoeuvred Netflix to secure the media giant.
The transaction aims to create a “next-generation media company” by uniting two of Hollywood’s “Big Five” legacy studios. The combined entity would bring HBO Max and Paramount+ under one roof, alongside major news networks CNN and CBS. Despite the strategic victory, WBD shareholders cast a symbolic advisory vote against executive compensation plans, specifically targeting a potential payout for CEO David Zaslav that could reach $887 million.
The deal now faces significant regulatory and political hurdles. The U.S. Department of Justice has already issued subpoenas to investigate the merger’s impact on studio output and streaming competition. Concerns have also been raised regarding the editorial independence of CNN and the involvement of sovereign wealth funds from Saudi Arabia, Qatar, and the UAE. Furthermore, an open letter from hundreds of Hollywood figures warned that further consolidation could reduce competition and lead to industry-wide job losses.
Following the announcement, Paramount Skydance shares fell approximately 4.5%, while WBD stock saw a slight dip. While executives express confidence that the merger will benefit consumers through expanded content libraries, state attorneys general and international regulators continue to review the structural impact. The companies currently anticipate the deal will close in late 2026.
