Shareholders of Warner Bros Discovery gave their blessing Thursday to a massive $110 billion acquisition by Paramount Skydance, though they voted down lucrative executive pay packages connected to the transaction.
The compensation proposal would have allowed CEO David Zaslav to collect as much as $887 million upon completion of the sale.
Regulatory scrutiny is now the next hurdle, with authorities in both the United States and United Kingdom preparing to review how the combination might affect market competition.
In late March, the U.S. Department of Justice issued subpoenas requesting details about potential impacts on studio production, content licensing, streaming market dynamics and movie theater operations.
Paramount emerged victorious from an extended bidding battle against Netflix, securing the Warner Bros acquisition and establishing CEO David Ellison as a major player in the shrinking entertainment industry.
The proposed combination has drawn significant pushback from performers, directors and cinema operators who worry about losing a major studio and the resulting effects on creative professionals, theater operators and film audiences.
“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros Discovery,” a Paramount spokesperson said.
Company officials anticipate finalizing the transaction during the third quarter of this year.
The consolidation would leave just four major American film studios remaining and result in job cuts, reduced creative projects and fewer options for audiences, according to more than 4,000 entertainment industry workers and consumers who penned an open letter urging California Attorney General Rob Bonta to pursue legal action blocking the merger.
Ellison has assured cinema owners that the combined Paramount and Warner Bros would distribute no fewer than 30 movies annually if regulators approve the deal.
Still, industry experts predict Hollywood’s total film production will decline as theater visits drop and major studios concentrate on a smaller number of high-budget productions.
