Hannah Miller
Shareholders of Warner Bros. Discovery voted overwhelmingly to approve a merger with Paramount Skydance, despite strong opposition to the deal in Hollywood.
Paramount agreed to buy Warner Bros. for $US110 billion ($151 billion) in February, beating out Netflix after a months-long bidding war. Stakeholders are set to receive $US31 in cash for each share of Warner Bros. stock they own once the deal closes.
The deal is still facing antitrust reviews in several jurisdictions, including the US and the EU. If not completed by September 30, they will receive 25 cents per share for each quarter until closing as part of a “marking fee.”
“We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves the creative and consumer communities,” a Paramount spokesperson said in a statement.
Shareholders also voted deny payment to Chief Executive Officer David Zaslav. Broker Advisor for Institutional Shareholder Services Inc. urged shareholders in April to reject the compensation package, which accelerates equity awards worth more than US$500 million and includes a tax refund of US$335 million, calling it “one of the highest estimates of a golden parachute ever considered.” However, the payment vote is not binding.
Actors, screenwriters, directors and other members of Hollywood rallied against the merger with Paramount, citing concerns about job losses, high production costs and limited choices for movie and television audiences.
More than 4000 people, including actors Joaquin Phoenix, Glenn Close and Bryan Cranston, signed an open letter opposing the merger earlier this month.
Senator Elizabeth Warren, Massachusetts Democrat, posted on social media after the vote that the plan was not done.
“Attorneys general across the country are taking steps to end this antitrust epidemic,” he said. “We need to continue this fight.”
Chief executive David Ellison has reiterated his commitment to increasing film output, noting that he plans to release at least 30 movies each year following the merger.
Ellison also said that Paramount will release all of its films in theaters and keep them there for at least 45 days.
If regulators end up blocking the deal, Paramount will have to pay a US$7 billion termination fee. Paramount has already paid a $US2.8 billion breakup fee to Netflix on behalf of Warner Bros. after the media company separated from the contract with the streamer.
