The pending merger between Paramount Skydance and Warner Bros. Discovery passed a critical threshold this week when WBD shareholders voted “overwhelmingly” on Thursday to approve the $111 billion deal. Shortly after the vote, Paramount leadership released a statement celebrating the “creation of a next-generation media and entertainment company.” While this approval is a significant milestone, the transaction still needs to pass a regulatory review in both the U.S. and Europe, and is facing increasingly stiff resistance from some in the entertainment industry.
Over 4,000 filmmakers, actors and other industry professionals have signed a “block the merger” open letter that argues the PSKY+ WBD will lead to significant job losses in Hollywood, a reduction in creative diversity, and fewer opportunities for mid-budget films. Some notable signatories include director Dennis Villeneuve, actor Noah Wyle, and actress Florence Pugh, all of whom are all involved in upcoming WBD projects. Theatre owners have expressed mixed reactions, with AMC’s Adam Aron feeling encouraged by Ellison’s promises to release a broad slate of movies to theatres while Cinema United CEO Michael O’Leary is still wary of the consolidation of top studios. A legal challenge from a group of state attorneys general is poised to be filed in the coming weeks, which will pose another challenge to the merger.
