Warner shareholders to vote on Paramount takeover

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Investors in Warner Bros. Discovery are about to decide if the recent Hollywood merger was a success, marking a key moment for the entertainment industry after almost ten years.

Warner has scheduled a meeting for shareholders on April 23rd to vote on the potential sale of the company to Paramount Skydance, backed by Larry Ellison, for $31 per share.

The massive $111 billion merger will likely change the entertainment world by uniting two major film studios and a huge collection of TV networks like CBS, HBO, HGTV, and Comedy Central. It also includes popular streaming services and news outlets CNN and CBS News. This deal would give Paramount ownership of iconic characters like Batman, Wile E. Coyote, and Harry Potter, hit shows such as “Hacks” and “The Pitt,” and a vast library of classic films including “Casablanca” and “One Battle After Another.”

The current offer of $31 per share is 63% higher than the initial $19-per-share proposal made by Paramount Chairman David Ellison in September. It’s also a significant 150% increase over Warner’s stock price before news of Ellison’s interest became public.

Warner Bros. Discovery CEO David Zaslav announced Thursday that the deal represents the successful conclusion of a careful and thorough evaluation of the company’s assets. He stated they are collaborating with Paramount to finalize the agreement and ensure everyone involved benefits.

Hollywood Inc.

I’m really struck by the potential impact of this merger – if it goes through, it seems the Ellison family could end up with control of both CNN and CBS News. It’s a huge amount of influence over what news people see!

Paramount is aiming to complete the acquisition by September. They’ve been focused on getting approval from government regulators both in the U.S. and internationally.

I’ve been following the Paramount deal closely, and it looks like if the regulators don’t make a decision by September, Paramount will start paying its shareholders a little extra – 25 cents per share for every three months the deal is delayed. They’re calling it a ‘ticking fee,’ basically a way to compensate us for the wait.

The merger will result in the new company having almost $80 billion in debt, which analysts predict will force them to make substantial cuts to spending.

For weeks it appeared that Netflix would scoop up Warner Bros.

In early December, Netflix made the highest bid – $27.75 million – to acquire the studios and streaming services, like HBO Max. However, John Ellison wouldn’t give up. He and his team kept working to convince shareholders, politicians, and Warner Bros. board members that their offer – which included the cable channels – was better and more likely to be approved by regulators.

The Ellison family has a strong relationship with President Trump. This week, Trump appointed Larry Ellison to a new White House advisory group focused on technology, such as artificial intelligence.

Hollywood Inc.

In December, right after Netflix finalized its purchase of Warner Bros., the Ellisons and their colleagues started planning how to regain their position.

Facing pressure, Warner Bros. Discovery’s board gave Paramount another chance to present its offer. After reviewing all proposals, the board decided that Paramount’s bid was better than Netflix’s, leading Netflix to withdraw. Paramount then paid Netflix $2.8 billion to end their previous agreement and officially signed the merger deal on February 27th.

Warner’s directors are recommending that shareholders vote in favor of the agreement with Paramount. The company has clarified that if shareholders don’t vote, it will be counted as a vote against the deal.

Warner’s largest shareholders include the Vanguard Group, BlackRock, Inc. and State Street Corp.

According to company documents, Zaslav held roughly $517 million worth of company stock and options when the deal was finalized.

Hollywood Inc.

Warner Bros. Discovery’s streaming services, HBO Max and Discovery+, did see some growth, but it wasn’t enough to offset the ongoing decline of its traditional cable TV business.

The filing revealed a surprise bidder appeared right before the auction ended.

On February 18th, a Singapore-based company named Nobelis Capital reportedly offered Warner $32.50 per share in cash.

The company claimed to have put $7.5 billion in an escrow account, but Warner’s financial advisors at J.P. Morgan couldn’t find any record of the deposit. Warner also stated that the company, Nobelis, didn’t appear to have any assets or secured funding. As a result, Warner decided to abandon the proposal.

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2026-03-26 17:31