Warner Bros investors approve $110bn Paramount merger

Warner Bros Discovery shareholders voted overwhelmingly to approve a merger with Paramount Skydance Corp, despite widespread opposition to the deal in Hollywood.

Paramount agreed to buy Warner Bros for $110 billion in February, beating out Netflix after a months-long bidding war. Stakeholders are set to receive $31 in cash for each share of Warner Bros. common stock that they own once the agreement goes through. It’s still facing antitrust review in several jurisdictions, including the US and EU. If the deal has not been finalized by September 30, they will receive 25 cents per share for each quarter until closing as part of a “ticking fee.”

Shareholders also voted to reject a pay package for Chief Executive Officer David Zaslav. Proxy adviser Institutional Shareholder Services urged shareholders in April to reject the compensation package, which accelerates equity awards valued at more than $500 million and includes $335 million in potential tax reimbursements, calling it “one of the highest golden parachute estimates ever observed.”

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Actors, screenwriters, directors, and other members of Hollywood came together to oppose the merger with Paramount, citing concerns over job losses, higher production costs, and fewer options for film and television viewers. More than 4 000 people, including actors Joaquin Phoenix, Glenn Close and Bryan Cranston, signed an open letter opposing the merger earlier this month.

Ellison has emphasised his commitment to increasing film output, noting that he plans to produce at least 30 movies annually following the merger. He also said that Paramount will release all of its films in theaters and keep them there exclusively for at least 45 days.

The deal has also faced scrutiny from politicians, including Senator Elizabeth Warren, a Democrat from Massachusetts, who said in February that the deal was “an antitrust disaster threatening higher prices and fewer choices for American families.” If regulators end up blocking the deal, Paramount will have to pay a $7 billion termination fee. Paramount already paid a $2.8 billion breakup fee to Netflix on behalf of Warner Bros. after the media company walked away from a deal with the streamer.

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