Warner Bros shareholders greenlight sale to Paramount

Warner Bros. Discovery shareholders voted overwhelmingly on Thursday to approve the sale of the company to Paramount.

The deal could reshape Hollywood and the American media landscape, which critics say is already dominated by just a few powerful players.

The European Commission and several US states, including California, are reviewing the merger.

Executives at Paramount say the deal will benefit consumers.

What does Warner Bros shareholders' approval mean?

In a preliminary vote count, the Warner Bros. Discovery shareholders approved the previously announced accusition by Paramount. The deal values the company at nearly $111 billion, including debt.  

The transaction is not final, as it still requires regulatory approval and could face legal challenges. 

The merger has been under political scrutiny in the United States. Last week, Democratic senators held a "spotlight" hearing on the deal, raising antitrust concerns about the combined company’s market power.

In Europe, the deal is expected to face fewer regulatory hurdles. The combined company would hold less than 20% market share across European Union markets, reducing antitrust concerns for the European Commission.

The deal follows an unsolicited bid by Paramount for Warner Bros. Discovery, despite an existing agreement with Netflix. The competing offers triggered a bidding battle that ended with Netflix withdrawing.

Merger tightens media market, critics warn

The merger combines two major streaming platforms, Paramount+ and HBO Max, as well as the two major Hollywood studios. It brings two of the biggest names in US television news, CBS and CNN, under the same company.

Critics of US President Donald Trump fear that CNN, which has frequently reported critically on his administration, could lose its editorial independence under the umbrella of Paramount. Paramount owner David Ellison is described as a Trump ally.

Opposition to the merger has also come from within the movie industry. An open letter signed by hundreds of Hollywood figures earlier in April warned that the deal would "further consolidate an already concentrated media landscape, reducing competition at a time when our industries and audiences can least afford it."

Paramount executives have rejected those concerns, saying the merger would benefit consumers, particularly if Paramount+ and HBO Max are combined into a single streaming service.

The deal could also draw additional scrutiny because it includes financing from sovereign wealth funds in Saudi Arabia, Qatar and the United Arab Emirates, raising potential national security concerns.

Warner Bros expects the deal to close later in 2026.

Edited by: Karl Sexton