NEW YORK — Stockholders of Warner Bros Discovery will cast their ballots Thursday on a proposed $81 billion acquisition by Paramount, a massive entertainment industry merger that could dramatically transform Hollywood’s landscape.
The deal would place Paramount in control of Warner’s entire portfolio, meaning popular properties like HBO Max, the “Harry Potter” franchise, and CNN would operate alongside Paramount’s CBS network, “Top Gun” movies, and Paramount+ streaming platform. Shareholder approval would move the acquisition significantly closer to completion.
The stockholder meeting is scheduled for 10 a.m. Eastern Time to decide on the transaction, which carries a total value of approximately $111 billion when including debt obligations based on Warner’s current shares in circulation.
Should shareholders give their approval, the Paramount-Warner combination must still navigate continued regulatory scrutiny, including examination by the U.S. Department of Justice. Warner executives anticipate finalizing the transaction during the third fiscal quarter.
Paramount’s pursuit of Warner has encountered numerous obstacles along the way. Although Warner’s board of directors currently supports the Paramount acquisition, the company initially showed little interest in this corporate union.
In late 2023, Warner rejected Paramount’s initial proposals and instead negotiated a $72 billion entertainment and streaming agreement with Netflix. Paramount responded by launching a hostile takeover attempt, appealing directly to shareholders to acquire the entire corporation, including cable operations that Netflix had no interest in purchasing.
The three corporations engaged in months of public competition over which presented the superior proposal. Warner’s leadership consistently favored Netflix’s offer. However, Paramount eventually increased its financial commitment, prompting Netflix to suddenly withdraw from the bidding war rather than continue the prolonged battle.
While the corporate conflict may have concluded, its consequences persist. Thousands of entertainment industry workers, including performers, filmmakers, screenwriters, and other professionals, have expressed “unequivocal opposition” to the transaction through a formal letter, contending that additional industry consolidation will result in employment cuts and reduced opportunities for creators and audiences alike.
Several legislators have also raised concerns about the merger.
“What is at stake is clearly not just a corporate deal, but who controls news, who controls entertainment, who controls storytelling,” Democratic Sen. Cory Booker said in a “spotlight” hearing on the merger held in Washington last week. “It’s about the concentration and consolidation of cultural power.”
This merger would unite two of Hollywood’s five remaining traditional studios. The combination would also merge two significant streaming services — Paramount+ and HBO Max — along with two prominent television news organizations — CBS and CNN — plus numerous other brands and entertainment channels.
Corporate leadership maintains this arrangement will benefit consumers by providing access to expanded content collections, especially if HBO Max and Paramount+ merge into a single streaming platform. Paramount CEO David Ellison has attempted to reassure filmmakers by guaranteeing a 45-day theatrical release window and establishing a target of producing 30 films annually across both Paramount and Warner divisions, which he promises will continue operating as independent entities within the merged company.
“I love cinema and I love film,” Ellison said at CinemaCon last week. “You can count on our complete commitment.”
However, the new ownership will also seek to reduce expenses. Regulatory documents have already revealed plans for staff reductions and scaling back duplicate functions. Critics remain doubtful about consumer advantages, cautioning about potential streaming price increases and possibly reduced content variety in the future.
The news division presents additional concerns. Following Skydance’s acquisition of Paramount less than twelve months ago, CBS has already experienced notable editorial changes, most significantly with Free Press founder Bari Weiss becoming CBS News editor-in-chief. Should the Warner acquisition proceed, many anticipate similar modifications at CNN, which has frequently drawn criticism from President Donald Trump.
Additional questions regarding political influence continue to emerge. The Justice Department and company executives have stated that politics will not influence the regulatory review process — but Trump has occasionally commented publicly on Warner’s future, despite retreating from previous suggestions about his potential personal involvement. Trump also maintains close ties with the Ellison family, especially billionaire Oracle founder Larry Ellison, who is investing billions to support his son’s company’s acquisition bid.
Meanwhile, Paramount has obtained financing from multiple sovereign wealth funds — including Saudi Arabia’s Public Investment Fund and funds from the United Arab Emirates and Qatar, according to regulatory documents. However, these investors will not receive voting privileges in the combined Paramount-Warner entity, the filings indicate. Paramount has not disclosed publicly how much these funds are contributing.
International regulators, including those in Europe, are examining the transaction — and individual states may attempt to challenge it as well. California Attorney General Rob Bonta has been especially outspoken regarding the deal and announced his state is conducting an investigation.
