After months of high-stakes corporate maneuvering and industry debate, Warner Bros. Discovery (WBD) announced Thursday that its shareholders have formally greenlit the sale of the company to Paramount Skydance, clearing the biggest hurdle for a hostile merger that will reshape the global media and entertainment landscape while valuing the combined entity at $110 billion.
The approval brings to a close a drawn-out takeover saga that began when Paramount Skydance launched an unsolicited bid for WBD, upending a pre-existing sales agreement between WBD and streaming giant Netflix. A subsequent bidding war concluded when Netflix declined to match Paramount’s offer, leaving the $31-per-share cash proposal as the final deal. The transaction values WBD’s outstanding equity at $81 billion, with the remaining $29 billion accounting for the substantial debt Paramount will assume as part of the acquisition.
When complete, the merger will create one of the world’s largest entertainment powerhouses, bringing together iconic media properties spanning news, scripted content, children’s programming and blockbuster film franchises under one umbrella. The combined portfolio will include major outlets such as CNN and CBS, premium networks including HBO, children’s favorite Nickelodeon, and some of Hollywood’s most commercially valuable intellectual property: Harry Potter, *Game of Thrones*, the DC Extended Universe, *Mission: Impossible* and *SpongeBob SquarePants*, among others.
In a formal statement following the shareholder vote, WBD CEO David Zaslav framed the approval as a critical milestone for the transformative transaction. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders,” Zaslav said. “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.”
While shareholders have backed the deal, a host of unanswered questions and regulatory hurdles remain before the merger can close. Much of the public scrutiny has centered on the Ellison family, which will control the newly merged media conglomerate. Oracle founder and billionaire Larry Ellison, a close long-time ally of former U.S. President Donald Trump, provided the core financing for the takeover, offering a financial guarantee that ultimately convinced WBD’s board to accept Paramount Skydance’s bid. His son David Ellison, the head of Paramount Skydance, is widely expected to lead the new company, and industry analysts anticipate he will implement deep cost-cutting measures to reduce the massive debt load taken on to fund the acquisition. Trump has already publicly stated he would weigh in on the deal’s approval, drawing extra attention to the family’s political ties.
Additional scrutiny comes from the deal’s financing structure: three major Middle Eastern sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi are contributing to the transaction, opening the door to potential national security reviews from U.S. regulators. Regulators on both sides of the Atlantic are already reviewing the merger: the European Commission has launched an assessment, and multiple U.S. states including California are also conducting their own reviews.
Beyond regulatory and political scrutiny, the merger has drawn fierce opposition from hundreds of leading figures across Hollywood. Earlier this month, an open letter signed by more than 1,000 industry professionals – including A-list actors Jane Fonda, Joaquin Phoenix and Bryan Cranston, and acclaimed directors J.J. Abrams and Denis Villeneuve – was published to protest the combination of two of Hollywood’s most historic studios.
The petition argues that the merger will further consolidate an already over-concentrated media landscape, reducing competition at a time when the industry and audiences can ill afford further contraction. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” the letter states. Critics warn the outcome will be fewer creative opportunities for emerging creators, widespread job losses across the film and television production ecosystem, higher consumer costs, and less diverse content choice for audiences globally.
Opponents also highlight that the merger would reduce the number of major U.S. film studios from five to just four, accelerating a trend of industry consolidation that has reshaped Hollywood over the past decade. Many in the entertainment sector share fears that cost-cutting measures to pay down the deal’s enormous price tag will lead to widespread layoffs and reduced investment in original, diverse content. Paramount Skydance has sought to assuage these concerns, pledging to maintain a steady schedule of theatrical film releases following the merger’s completion.