Fisa spy powers almost certain to expire after Congress fails to act – US politics live
Fisa spy powers on the brink of expiration after Congress inaction
The Guardian World1 min read
Warner Bros shareholders approve Paramount’s takeover
TL;DR
Warner Bros Discovery shareholders approved a $110bn merger with Paramount Skydance, valuing the deal at nearly $111bn including debt. However, they voted against executive compensation plans linked to the merger.
Key points
- Warner Bros Discovery shareholders approved a $110bn merger with Paramount.
- The deal is valued at nearly $111bn including debt.
- Shareholders voted against executive compensation plans tied to the merger.
Mentioned in this story
Warner Bros DiscoveryParamount SkydanceHBO MaxCNNCBSParamount+David Zaslav
Warner Bros Discovery shareholders have backed the company’s proposed $110bn merger with Paramount Skydance, but cast an advisory vote against executive compensation plans tied to the deal.
Per a preliminary vote count on Thursday, the overwhelming majority of Warner Bros Discovery shareholders voted in support of selling the entire business to Paramount for $31 a share, the company said. Including debt, the deal is valued at nearly $111bn.
Under the pay packages proposed to executives, CEO David Zaslav could receive up to $887m if the sale is completed.
Skydance-owned Paramount wants to buy all of Warner. That means HBO Max, valuable titles like Harry Potter and even CNN could soon find themselves under the same roof with CBS, Top Gun and the Paramount+ streaming service. A greenlight from company shareholders increases the likelihood of that becoming a reality.
Attention now turns to regulatory authorities, with both Washington and London expected to examine the merger’s impact on competition.
The United States Department of Justice sent subpoenas in late March seeking information on how the merger would affect studio output, content rights, streaming competition and movie theatres.
Paramount triumphed over Netflix in a months-long bidding war, sealing the Warner Bros deal and cementing chief executive David Ellison as a powerful force in the rapidly contracting entertainment landscape.
The merger has faced considerable opposition from actors, filmmakers and theatre groups that have raised concerns about the loss of a major studio and its impact on the creative community, theatre owners and moviegoers.
“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros Discovery,” a Paramount spokesperson said.
The deal is expected to close in the third quarter this year.
The merger will reduce the number of major US film studios to four and lead to fewer jobs, creative opportunities and less choice for consumers, over 4,000 film industry professionals and consumers said in an open letter, which called on California Attorney General Rob Bonta to consider taking legal action to block it.
Ellison promised theatre owners that Paramount and Warner Bros would release at least 30 films a year if regulators clear the deal.
However, analysts expect Hollywood’s overall film output to contract, as theatre attendance declines and the major studios focus on fewer, big-budget films.
Q&A
What is the value of the Warner Bros and Paramount merger?
The merger is valued at nearly $111bn, including debt, with Warner Bros shareholders supporting a sale price of $31 per share.
Who stands to gain the most from the executive compensation plan in the merger?
CEO David Zaslav could receive up to $887m if the sale of Warner Bros to Paramount is completed.
What will happen to HBO Max and CNN after the merger with Paramount?
If the merger proceeds, HBO Max, CNN, and other Warner properties could be integrated with Paramount's assets like CBS and Paramount+.
