Hannah Miller
Warner Bros. Discovery shareholders voted overwhelmingly to approve a merger with Paramount Skydance, despite widespread opposition to the deal in Hollywood.
Paramount agreed to buy Warner Bros. for $US110 billion ($151 billion) in February, beating out Netflix after a months-long bidding war. Stakeholders are set to receive $US31 in cash for each share of Warner Bros. common stock that they own once the agreement goes through.
The deal is still facing antitrust review in several jurisdictions, including the US and EU. If it has not been finalised by September 30, they will receive 25 cents per share for each quarter until closing as part of a “ticking fee.”
“We look forward to closing the transaction in the coming months and realising the creation of a next-generation media and entertainment company that better serves both the creative community and consumers,” a spokesperson for Paramount said in a statement.
Shareholders also voted to reject a pay package for Chief Executive Officer David Zaslav. Proxy adviser Institutional Shareholder Services Inc. urged shareholders in April to reject the compensation package, which accelerates equity awards valued at more than $US500 million and includes $US335 million in potential tax reimbursements, calling it “one of the highest golden parachute estimates ever observed.” The vote on pay is nonbinding, however.
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 4000 people, including actors Joaquin Phoenix, Glenn Close and Bryan Cranston, signed an open letter opposing the merger earlier this month.
Senator Elizabeth Warren, a Massachusetts Democrat, posted on social media after the vote that the deal isn’t done.
“State attorneys general across the country are stepping up to stop this antitrust disaster,” she said. “We need to keep up this fight.”
Paramount chief executive David Ellison has emphasised his commitment to increasing film output, noting that he plans to produce at least 30 movies annually following the merger.
Ellison also said that Paramount will release all of its films in theatres and keep them there exclusively for at least 45 days.
If regulators end up blocking the deal, Paramount will have to pay a $US7 billion termination fee. Paramount already paid a $US2.8 billion breakup fee to Netflix on behalf of Warner Bros. after the media company walked away from a deal with the streamer.
