One of the biggest media deals in history comes closer to completion, as the shareholders who own Warner Bros. Discovery (WBD) voted “overwhelmingly” to approve the adoption of the merger agreement with Paramount, according to WBD.
The controversial merger encompasses two of Hollywood’s five legacy studios – a deal which has been valued at $111 billion and which will have huge impacts on filmmaking and the future of cinema.
Yesterday’s vote was described as “another key milestone toward completing this historic transaction” by WBD – a deal which will “deliver exceptional value to our stockholders”.
It will be completed between July and September this year, subject to regulatory approval.
Not everyone shares WBD’s enthusiasm, as the deal threatens to completely reshape Hollywood.
It would reduce the number of US film studios to four, and many believe the merger would result in diminishing quality and significant job losses.
Both Democrats and Republicans have raised concerns the merger could result in higher prices and fewer choices for customers, while cinema operators have also expressed concern that the merger could cost jobs and reduce the number of films released in theatres.
Sens. Cory Booker and Elizabeth Warren have been rallying to stop Paramount’s WBD takeover, with Warren responding to the shareholder vote by stating: “The Paramount-Warner Bros. merger isn’t a done deal. State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
Paramount chief executive David Ellison has asserted the deal would be good for the creative community. However, Ellison and his father Larry Ellison both have close ties to Donald Trump – something which has prompted fears that the merger would mean fewer films like recent Oscar winners One Battle After Another and Sinners, both Warner Bros. titles which engage in politics and explore topics which Trump would frown upon.
Celebrities are also speaking up. More than 1,000 film and TV stars and creatives, including Joaquin Phoenix, Jane Fonda, Bryan Cranston, Laura Poitras, Javier Bardem, David Fincher, Denis Villeneuve, Emma Thompson and Yorgos Lanthimos have already signed an open letter opposing Paramount Skydance’s pending acquisition of Warner Bros. Discovery.
“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good,” the letter, available on the website BlocktheMerger.com, states. “The integrity, independence, and diversity of our industry would be grievously compromised. Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement.”
The letter argues that “media consolidation has already weakened one of America’s most vital global industries – one that has long shaped culture and connected people around the world” and concludes that a “vibrant future” must be ensured for the US’ “single most significant export”.
The number of signatories is growing, with more A-listers joining to fight to block the merger.
Robert De Niro, Holly Hunter, Florence Pugh, and Sofia Coppola have added their names, with the number of signatories now at over 4,000.
One voice which resumed the dicontent was that of actor Mark Ruffalo’s. He posted online, following the shareholder vote – in reference to David and Larry Ellison: “Two guys, both of them with a very narrow understanding of the world, who are close friends to the most anti-First Amendment, anti-press President in history, who censors science, climate change, anything having to do with equality, and is currently in the process of killing American citizens, waging a disastrous illegal war, while supporting a genocide, will own the greatest concentration of news and entertainment in world history. What could possibly go wrong?”
He added: “This merger would never happen without the Ellison’s friendship and support of their dear leader, Trump. Acting like this is all somehow normal is an act of insanity. It will be remembered as such. Starting a business venture 78 billion in debt is not a winning bet. Lots of good folks will lose their jobs, lots of important stories will never be told and two guys will be making decisions about what you watch or not and try to control how you think.”
Organizers of the BlockTheMerger.com open letter also include the Writers Guild of America (WGA), Democracy Defenders Fund, Jane Fonda’s Committee for the First Amendment, the American Economic Liberties Project, media-advocacy group Free Press, and Reporters Without Borders (RSF).