WBD Shareholders Approve Sale To Paramount In Key Vote

Key Points:

• Shareholders of Warner Bros. Discovery (WBD) overwhelmingly approved the sale of the company to David Ellison’s Paramount Skydance for $31 per share in cash, a key step toward completing the $81 billion equity deal announced in February.
• CEO David Zaslav’s compensation related to the deal, potentially exceeding $500 million, was rejected by shareholders in a non-binding vote, meaning he can still receive the payment.
• The merger faces regulatory scrutiny from the U.S. Department of Justice, the EU, the UK, and possibly the California Attorney General, amid concerns over media consolidation, job losses, and content diversity.
• The $110 billion enterprise transaction will be funded by $47 billion in equity backed by the Ellison family and Middle East investors, alongside $49 billion in debt commitments, raising concerns from credit rating agencies about the high leverage and junk debt status.
• The deal has sparked significant industry pushback, with major Hollywood figures, Senate Democrats, and theater owners expressing worries about competition, creative independence, and potential political influence, while Ellison pledges increased content investment and a commitment to theatrical release windows.