The essentials
Warner Bros. shareholders approved Paramount merger at $31/share with $45.7B Ellison-backed financing.
Warner Bros. Discovery shareholders have approved the merger with Paramount at $31 per share, following Paramount's successful bid to outpace Netflix in the acquisition race. The transaction is expected to close in the third quarter of 2026.
Larry Ellison has guaranteed $45.7 billion in equity financing for the deal. Paramount is additionally seeking capital from sovereign wealth funds in Saudi Arabia, the UAE, and Qatar to support the transaction structure.
The merger would combine two of Hollywood's five remaining legacy studios. Paramount's leadership has committed to maintaining a 45-day theatrical window and producing 30 movies annually under the combined entity.
In a separate governance matter, Warner Bros. shareholders rejected CEO David Zaslav's proposed $887 million severance package, signaling investor scrutiny over executive compensation within the deal framework.
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Multi-layered financing secures $31 per share valuation
The merger structure combines Ellison's $45.7 billion equity guarantee with sovereign wealth fund participation from Saudi Arabia, the UAE, and Qatar. This hybrid financing approach underpins the $31 per share price approved by shareholders. The capital architecture distributes risk across multiple institutional investors while enabling the transaction's Q3 2026 completion timeline.
Hollywood studio merger reshapes industry competitive landscape
The approved transaction combines two of five remaining legacy studios, creating a consolidated entertainment entity. Paramount's operational commitments—45-day theatrical windows and 30 annual films—establish content strategy parameters. The deal represents significant industry consolidation, reducing the number of major independent studio competitors in the marketplace.