Shareholders of Warner Bros. Discovery (WBD) overwhelmingly supported the sale of Paramount Skydance Corp. For $110bn including debt, Bloomberg writes.
Paramount and WBD agreed on the terms of the deal in late February. WBD’s board of directors recommended shareholder approval.
Under the terms of the deal, Paramount will pay WBD a penalty of $7bn if the deal is blocked by regulators. The deal also provides for a quarterly premium of $0.25 per share to WBD’s proposed price ($31 per share) after 30 September 2026 if the deal has not closed by then. At the same time, Paramount has already paid a $2.8 billion penalty to WBD for cancelling its agreement with Netflix Inc.
WBD owns, among others, film studio Warner Bros. HBO TV channel and streaming service HBO Max, as well as entertainment, sports and news channels including CNN, TNT Sports and Discovery.
Last week, writers, actors and directors published an open letter opposing Paramount’s deal with WBD, saying it would hurt an already struggling Hollywood industry. The letter was signed by more than 4,000 people, including actors Jane Fonda, Joaquin Phoenix and Bryan Cranston.
WBD shares are weakly fluctuating in Thursday trading. The price of Paramount securities is falling by 4.8 per cent.