Shareholders of Warner Bros. Discovery are set to vote on Thursday on the company’s proposed sale offer of USD 81 billion (equity value) to Paramount Skydance, as per media reports.
This will mark a major merger resulting in a massive change in Hollywood.
Shareholders are set to meet at 10 a.m. ET to vote on the proposed deal, which is valued at nearly USD 111 billion (Enterprise value), including debt, based on Warner’s current outstanding shares.
The proposed deal, which is yet to be approved by the federal regulators, is expected to bring together two major media houses, CNN and CBS. The new combined entity will boast a film library of over 15,000 films, TV, and streaming titles, including globally popular franchises like Game of Thrones, Mission Impossible, Harry Potter, and the DC Universe.
For months, Netflix had been the favourite to close the deal. The streaming pioneer had launched a USD 27.75-per-share agreement for Warner Bros Discovery's studio and streaming assets. The deal, valued at USD 83 billion, was eventually upended by Paramount with USD 31-per-share offer.
Additionally, while Netflix had offered to buy only Warner Bros. Discovery's studio and streaming assets, Paramount was buying the whole company.
Warner Bros. executives gave Netflix four business days to come up with a better counteroffer, but the streaming giant refused. Warner Bros. received the contracts from Paramount, and concluded with Paramount winning over the deal, Reuters reported.
Earlier this month, Skydance Media chief David Ellison made a surprise appearance at CinemaCon, reassuring theatre owners over the future of Paramount and his proposed acquisition of Warner Bros. and reiterating his commitment to big-screen releases.
Taking the stage at the annual gathering of exhibitors in Las Vegas, Ellison said the combined entity would prioritise theatrical distribution and significantly scale up film output.