A massive media merger is moving forward after shareholders gave their official approval. Warner Bros. Discovery stockholders voted to accept the buyout offer from Paramount Skydance Corporation, creating one of the largest entertainment companies in the world.
The deal values Warner Bros. Discovery at $81 billion, and when including debt, the total reaches nearly $111 billion. Shareholders will receive $31.00 per share in cash, which is a 147% premium above the company’s stock price before the bidding war started. The vote took place on April 23, 2026, and the preliminary count showed overwhelming support for the sale.
Big Franchises Like Harry Potter and DC Now Under One Roof
This merger brings together some of Hollywood’s most valuable entertainment properties. The combined company will own HBO, CBS, CNN, Nickelodeon, and Discovery. Movie fans will see famous franchises like Harry Potter, Game of Thrones, the DC Universe, Mission Impossible, and SpongeBob SquarePants all controlled by the same parent company.
Paramount CEO David Ellison will run the new organization. His father, Oracle billionaire Larry Ellison, provided much of the money for the purchase. The younger Ellison has already shared his ideas about how the two studios will operate together.
“Our view point is, HBO should stay HBO,” Ellison stated during a conference call last month. “They built a phenomenal brand, they are a leader in this space and we just want them to continue doing more of it.”
Paramount Plus and HBO Max Streaming Services Will Combine
The merger will change how millions of people watch TV at home. Paramount+ and HBO Max will merge into a single streaming service. Company leaders believe putting both platforms together will help them compete better against Netflix and Disney.
Current numbers show HBO Max controls about 12% of the on-demand subscription market in the United States, while Paramount+ holds only 3%. Together, they would still trail behind Netflix at 19% and Disney at 27% (when combining Hulu and Disney+). But the new service would become a much stronger competitor.
Ellison has also promised to release more than 30 movies per year across both studios. He recently spoke at CinemaCon and gave theater owners a clear pledge about keeping movies in cinemas.
“You can count on our complete commitment,” Ellison told the audience.
He confirmed a 45-day exclusive window for films in theaters before they move to streaming.
How the Bidding War Between Paramount and Netflix Played Out
The path to this merger involved a surprising bidding war. Last December, Netflix announced an $82.7 billion agreement to buy Warner Bros. Discovery. That deal would have covered the film studio and streaming service while spinning off the cable channels into a separate company.
But Paramount jumped in with a better offer. They made an unsolicited bid for the entire company – not just parts of it. The two companies fought for months. David Zaslav, the current Warner Bros. Discovery CEO, supported the Netflix deal at first. Eventually, Netflix decided not to match Paramount’s higher price.
Netflix co-CEOs Ted Sarandos and Greg Peters explained their decision, saying buying Warner Bros. was “always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” Paramount will pay a $2.8 billion breakup fee to Netflix for walking away from their earlier arrangement.
Hollywood Stars and Lawmakers Speak Against the Merger
Not everyone supports this massive merger. More than 1,000 actors, writers, and directors signed an open letter asking regulators to block the deal. Big names like Jane Fonda, Joaquin Phoenix, Bryan Cranston, JJ Abrams, and Denis Villeneuve all added their voices to the protest.
The letter warns that putting two major studios together will hurt the entertainment industry.
“This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” the petition stated. “The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences.”
Lawmakers have also raised concerns. Senator Cory Booker spoke about the issue during a Senate hearing.
“What is at stake is clearly not just a corporate deal, but who controls news, who controls entertainment, who controls storytelling,” Booker said.
Political Questions and CNN News Division Concerns
The Ellison family has close ties to President Donald Trump. Larry Ellison is a longtime ally of the president, which has raised questions about whether the merger will face real scrutiny from regulators. Trump has already said he would weigh in on approval of the buyout.
The news division merger is especially sensitive. CNN and CBS News will operate under the same ownership for the first time. After Skydance bought Paramount last year, CBS News already saw big changes. The company brought in Bari Weiss, founder of Free Press, as editor-in-chief of its news operations. Many people expect similar changes at CNN if the deal goes through.
Defense Secretary Pete Hegseth made his position clear in March. “The sooner David Ellison takes over that network, the better,” Hegseth told reporters when talking about CNN.
Ellison has promised to protect editorial independence. “It’s maintained at CBS. It’ll be maintained at CNN,” he told CNBC in March.
Middle Eastern Money and Regulatory Reviews Still Pending
The financing for this deal includes money from three Middle Eastern sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. This could bring extra national security review. Paramount has stated in regulatory filings that these funds will have no governance rights in the combined company.
Several regulatory reviews must still happen before the merger can close. The European Commission is examining the deal. Multiple US states, including California, are also investigating. Warner Bros. Discovery expects the transaction to close in the third quarter of 2026.
If regulators block the deal, Paramount would owe a $7 billion breakup fee.
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What the Merger Means for Movie Theaters and Jobs
The merger reduces the number of major US film studios from five to four. Almost 10 years ago, Hollywood had six major studios until Disney bought most of 20th Century Fox. Now Paramount, Disney, Universal, and Sony would control almost all big-budget movie production.
Warner Bros. just had a very strong year at the box office. The studio accounted for 21% of domestic ticket sales in 2025 with movies like “A Minecraft Movie,” “Superman,” and “Sinners.” The studio also received 30 Oscar nominations. Paramount had only 6% market share, driven mostly by “Mission: Impossible – The Final Reckoning,” and received zero Oscar nominations.
Job losses are expected. Regulatory filings show the new ownership will look for ways to cut costs, including layoffs and downsizing overlapping operations. Ellison has already talked about cutting $2 billion in costs at Paramount after that merger closed.
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