An $81 billion mega merger between Warner Bros Discovery and Paramount Global has moved closer to completion after shareholders gave approval to the deal. A preliminary vote count on Thursday showed that a large majority of Warner shareholders backed the sale of the company at $31 per share. When debt is included, the total value of the deal rises to nearly $111 billion, reported Associated Press.

The acquisition plan comes from Skydance-backed Paramount, which wants full control of Warner’s vast entertainment empire. If the deal goes through, major assets such as HBO Max, Harry Potter, and CNN would sit alongside Paramount’s CBS, Top Gun, and Paramount+.

The companies still need approval from regulators, including the US Department of Justice. Warner has said it expects the deal to close in the third fiscal quarter if approvals come through.

Why shareholders back merger

Warner had earlier rejected Paramount’s offer and instead chose a $72 billion deal with Netflix. That agreement focused on studios and streaming and did not include Warner’s cable business.

Paramount then made a direct move to shareholders with a hostile bid for the entire company. The fight between the three companies played out in public for months. Warner’s board supported Netflix for a long time. But Paramount eventually raised its offer, and Netflix stepped away from the deal, reported Associated Press.

Company leaders said the merger will create a stronger entertainment giant. They said that combining streaming services and film studios will give audiences access to more content in one place. David Ellison has promised to protect cinema releases.

“I love cinema and I love film,” Ellison said at CinemaCon. “You can count on our complete commitment,” he added. 

He has also promised a 45-day theatrical window and a plan to release 30 films a year across both studios.

Legalities and concerns

The deal sparked opposition from parts of Hollywood. Thousands of actors, writers, and directors signed a letter warning that the merger could lead to job losses and fewer creative choices. Critics fear that more consolidation will reduce competition and limit opportunities, reported Associated Press.

Lawmakers have also raised concerns. Cory Booker said the issue goes beyond business. “What is at stake is clearly not just a corporate deal, but who controls news, who controls entertainment, who controls storytelling,” he said during a Senate hearing.

The merger would combine two major news networks, CBS and CNN. Changes at CBS after Skydance took control have already drawn attention, including the appointment of Bari Weiss as editor-in-chief.

Earlier, US President Donald Trump commented publicly on Warner’s future and shares close ties with Larry Ellison, who is backing the deal financially.

At the same time, Paramount has secured funding from global investors, including the Public Investment Fund and funds linked to the UAE and Qatar, reported the Associated Press. Regulatory filings say these investors will not have voting rights in the merged company.

Regulators in the United States and Europe are reviewing the deal. Rob Bonta has confirmed that California is also investigating the transaction.