Warner Bros. Discovery shareholders voted overwhelmingly to approve the $110 billion sale of the company to Paramount Skydance, clearing a major hurdle in a deal that could reshape Hollywood’s media landscape. The approval, based on a preliminary count from a special meeting held on Thursday, values the transaction at $31 per share in cash, with debt pushing the total valuation near $111 billion. This ends a months-long bidding war that saw Netflix initially win Warner Bros.’ favor with a $72 billion offer, only to be outbid by Paramount’s higher cash proposal.
The combined entity would bring together HBO Max and Paramount+, two of the largest streaming platforms in the U.S., alongside Warner’s library of franchises like “Harry Potter” and Paramount’s “Top Gun” and CBS news division. Analysts project the merged company could reach roughly 200 million gross streaming subscribers, surpassing all competitors except Netflix. Needham’s Laura Martin noted the combination would eliminate redundant mid-tier over-the-top services in favor of a unified global platform with stronger pricing power and advertising potential.
Despite shareholder support, the deal remains subject to regulatory scrutiny, with critics warning of further consolidation in an industry already dominated by a few major players. Warner shareholders also rejected a separate proposal outlining post-merger executive payments, signaling unease over compensation structures even as they endorsed the sale. The CinemaCon attendee wearing a pin opposing the merger in Las Vegas last week reflected broader industry concern that fewer studios could signify reduced creative choices and job losses for writers, directors, and actors.
Paramount Skydance has committed to producing at least 30 theatrical films annually if the deal closes, which is expected in the third quarter of 2026 pending regulatory clearances. For Netflix, the collapse of its bid has been viewed by some investors as a relief, removing a complex debt-laden scenario and allowing the company to refocus on scaling its advertising business. BMO analyst Brian J. Pitz noted a “cleaner Netflix story” emerging as the bidding war concludes.
For more on this story, see WBD Shareholders Vote on Paramount Merger Amid Union and Political Opposition.
How the deal changes the streaming and studio landscape
The merger unites two of the three largest traditional media companies with major streaming ambitions, creating a entity with combined scale in content libraries, distribution, and advertising inventory. Unlike pure-play streamers, the recent company would control both legacy TV networks and direct-to-consumer platforms, potentially giving it leverage in negotiations with advertisers, and distributors. The integration of HBO Max’s prestige content with Paramount+’s broad appeal aims to reduce churn and increase engagement across demographics.
Why regulators and industry groups are pushing back
Antitrust enforcers and creative unions have raised alarms about reduced competition in both content creation and distribution, arguing that fewer buyers for scripts and fewer platforms for distribution could suppress wages and limit creative risk-taking. The opposition letter signed by thousands of industry professionals cites fears of homogenized output and fewer greenlights for niche or innovative projects. State-level attorneys general or federal courts could still intervene before closing, despite the current administration’s historically permissive stance on mergers.
This follows our earlier report, 3,000 Industry Professionals Urge Regulators to Block Paramount-Warner Merger.
What Netflix gains from the failed bid
With the Paramount-Skydance offer now backed by shareholders, Netflix is freed from the financial and strategic complexity of pursuing Warner Bros., allowing it to double down on its core streaming model and advertising expansion. Investors had expressed concern over the debt burden Warner would have brought to a combined entity, and Netflix’s stock movement reflected relief once the bidding war ended. The company can now pursue its goal of building a $10 billion+ advertising business without the distraction of a contested takeover.
Will the merger face legal challenges before closing?
Yes, the deal still awaits regulatory approvals in the U.S. And potentially abroad, and critics have signaled they may pursue legal action to block it on antitrust grounds, though no formal challenges have been filed yet.
How will the combined company handle overlapping services like HBO Max and Paramount+?
According to analysts cited in the sources, the company plans to consolidate its streaming offerings into a single global platform rather than maintain three mid-tier services, aiming to improve efficiency and competitiveness in subscriber acquisition and ad revenue.