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Shareholders greenlight landmark media merger
Warner Bros Discovery investors have voted to accept a £82 billion ($111 billion) buyout by Paramount Skydance, a deal poised to reshape the global entertainment industry. The agreement, announced Thursday, would place iconic franchises like Harry Potter and Game of Thrones, along with CNN, under Paramount's control.
Leadership and regulatory hurdles
Samuel DiPiazza, chair of Warner Bros Discovery, called the merger an opportunity to "create an exceptional combined company that will expand consumer choice and benefit the global creative talent community." However, the transaction still requires approval from the U.S. Department of Justice and European competition authorities.
Controversy and opposition
The deal follows a contentious bidding war, after Netflix withdrew its earlier offer for Warner Bros in favor of Paramount's higher bid. Paramount, backed by tech billionaire Larry Ellison and led by his son David, aims to establish itself as a dominant force in Hollywood.
Critics, however, have raised alarms over potential conflicts of interest. Actor Mark Ruffalo is expected to join protesters outside a Thursday dinner hosted by David Ellison and former U.S. President Donald Trump at Washington's U.S. Institute of Peace. Organizers have labeled the event a "corruption gala," citing concerns over the Ellisons' influence on CNN's editorial independence.
"The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world."
Letter signed by over 1,400 industry figures, including Emma Thompson and Ben Stiller
Trump, a frequent critic of CNN, has publicly urged that the network be sold as part of the deal, calling its leadership "corrupt or incompetent."
Industry and political reactions
Senator Elizabeth Warren, a Democrat, warned the merger could be "an anti-trust disaster," vowing that state attorneys general would challenge it. Conversely, Mike Proulx of Forrester Research suggested U.S. regulators are likely to approve the deal, with European authorities posing the primary obstacle due to concerns over market concentration.
What's next for the merged entity
If approved, Paramount will integrate Warner Bros' HBO Max subscribers into its existing portfolio, which includes Nickelodeon, CBS, and Comedy Central. The company also stands to gain control of the Food Network, Discovery Channel, and a suite of sports properties.
Paramount has pledged to finalize the deal by September, contingent on regulatory clearances. In response to industry concerns, the company stated it remains "committed to talent and ensuring creators have more avenues for their work."
