Warner Bros. Discovery shareholders have voted overwhelmingly in favour of a takeover by Paramount Skydance, clearing a major hurdle for one of the biggest media deals in recent years.
The vote took place during a special shareholder meeting on Thursday, paving the way for CNN, HBO and Warner’s other media brands to eventually join forces with Paramount under CEO David Ellison.
“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery, building on our successful equity and debt syndications and progress across regulatory approvals,” Paramount said in a statement. 
“We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers,” the company added.
Paramount still needs to secure regulatory approval in the United States and other countries, but company executives are optimistic the deal will be completed in the third quarter of the year, meaning by the end of September. The deal terms include a ticking fee that increases the price per share if the transaction is not finalised by September 30.
The financial terms have made the deal attractive to many investors. A year ago, WBD stock was trading at about $8 per share, while Paramount is offering $31 per share.
However, the deal has sparked intense controversy in Hollywood and beyond, with entertainment industry veterans warning against media consolidation and activists criticising Paramount’s close ties to United States President Donald Trump. Opponents held a “block the merger” protest outside WBD headquarters on Thursday morning shortly before the vote.
Several state attorneys general offices in California and New York have said they are closely examining the deal on antitrust grounds, partly out of concern that the Trump administration’s federal regulators will approve the merger for political reasons. European regulatory bodies are also reviewing the deal and may demand that Paramount divest some assets before granting approval.
While shareholders easily advanced the Paramount deal, they did not approve a separate measure on the same ballot relating to compensation packages for outgoing WBD CEO David Zaslav and other executive officers. The payout to Zaslav could total as much as $886 million, which the Los Angeles Times described as potentially one of the highest golden parachutes ever observed.
The compensation package proposal “did not receive sufficient votes and did not pass,” a representative said at the end of the virtual shareholder meeting. However, the vote was advisory and not binding, meaning the WBD board of directors may still move forward with the payouts.
