Warner Bros shareholders approve acquisition by Paramount Skydance
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The news: Warner Bros Discovery shareholders have approved Paramount Skydance’s proposed acquisition of the iconic Hollywood studio on Thursday.
The numbers: Shareholders “overwhelmingly” voted in favour of Paramount’s plan to buy Warner Bros for USD110 billion ($154.5 billion), with stakeholders set to receive USD31 per share in cash once the deal goes through.
The transaction is still facing antitrust review across several jurisdictions including the US and European Union. If the transaction is not approved by 25 September, shareholders will receive a quarterly ‘ticking fee’ of USD25 cents per share until closing.
David Zaslav, President and CEO of Warner Bros. Discovery said: “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount’s move to up its offer to USD31 per share in February prompted Netflix to walk away from its pursuit of Warner Bros studio and streaming assets.
Paramount’s offer included a USD7 billion breakup fee should the deal fail to gain regulatory approval. It also agreed to pay a USD2.8 billion breakup fee to Netflix over the termination of its original agreement with Warner Bros.
Proxy advisory firm ISS had recommended shareholders accept the deal.
The source: Warner Bros Discovery
