Warner Bros. Discovery shareholders voted overwhelmingly Thursday to approve Paramount’s takeover bid, a preliminary count showed, clearing a major hurdle for the roughly $111 billion deal (including debt).
The transaction still requires regulatory approval and could face legal challenges. U.S. scrutiny has intensified: Democratic senators held a “spotlight” hearing last week raising antitrust concerns about the combined company’s market power. The European Commission and several U.S. states, including California, are reviewing the merger. European regulators are expected to face fewer hurdles, with the combined entity projected to hold under 20% market share across EU markets.
Paramount launched an unsolicited bid despite Warner Bros.’ prior agreement with Netflix, touching off a bidding contest that ended with Netflix withdrawing. Paramount executives argue the merger will benefit consumers, especially if Paramount+ and HBO Max are combined into a single streaming service.
Critics warn the deal further concentrates an already powerful media landscape. The merger brings together two major streaming platforms and studios, and unites CBS and CNN under one roof. Opponents, including hundreds of Hollywood figures who signed an open letter, said consolidation will reduce competition. Some critics fear CNN’s editorial independence could be threatened given Paramount owner David Ellison’s reported ties to former President Donald Trump. The deal’s financing, which includes investments from sovereign wealth funds in Saudi Arabia, Qatar and the United Arab Emirates, has also prompted national security concerns.
Paramount and Warner Bros. expect the transaction to close later in 2026, subject to regulatory clearances and any legal obstacles.
Edited by: Karl Sexton