Main points
- Warner Bros. shareholders have approved a merger deal with Paramount, which will be completed subject to regulatory approvals.
- The total acquisition value is over $111 billion, and the deal could significantly change the media landscape, including Hollywood.
Warner Bros. Discovery voted to sell Paramount business / Photo Pexels
Warner Bros. shareholders have approved a merger with Paramount, giving the green light to create one of the world's largest media giants. The deal is expected to close in the third quarter of 2026.
What is known about the Warner and Paramount deal?
The Wall Street Journal reports on the decision made by shareholders at the meeting on April 23.
At a special extraordinary meeting, Warner Bros. shareholders overwhelmingly supported the merger agreement with Paramount.
The company expects the deal to close in the third quarter of 2026. The deal is currently subject to regulatory approvals. This is because it combines two large businesses, including film studios and television studios. That is, only one entity will be able to control a number of cable networks.
In particular, it is known that the merger of companies could significantly affect the entertainment industry. At the same time, as the AP notes, the final deal will even change Hollywood and the media landscape as a whole.
What is known about the details of the deal?
The publication additionally reports on the value of the shares. The meeting agreed to sell at $31 per share. The total purchase price, including the company's debts, is over $111 billion .
It is also known that the CEO of Warner Bros. Discovery commented on the shareholders' decision as something that signifies ” another key milestone on the way to completing this historic deal .”
Instead, Paramount says it hopes to close the deal in the coming months and looks forward to ” realizing the creation of a next-generation media and entertainment company .”
What else is known about the merger of Warner Bros. and Paramount?
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It was previously known that Paramount is actively looking for money to complete the deal with Warner Bros. Discovery. So, the main “savior” may be the Public Investment Fund. This company, according to preliminary information, is ready to invest up to $ 10 billion. The total amount that Paramount is looking for is $ 24 billion.
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Potential companies that can help financially are also Qatar Investment Authority and L'imad Holding.
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In particular, it is known that the merger of the companies will unite brands such as CNN and CBS. And will improve the companies' positions at a time when viewers are being lured to streaming platforms.