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Shareholders approve Warner Bros Discovery-Paramount merger

Economy & businessEconomy
Key Points
  • Shareholders approved the $110bn merger but rejected executive pay packages.
  • Regulatory approvals from DOJ and European agencies are still needed.
  • A potential lawsuit by state attorneys general may seek to block the deal.

The merger, already approved by both companies' boards, still requires regulatory clearance from the Department of Justice and European agencies. According to The Guardian - World, former FTC member Alvaro Bedoya described a strong possibility of a lawsuit by a coalition of state attorneys general to block the deal, led by California Attorney General Rob Bonta. If approved, WBD shareholders will receive $31 per share, and the companies expect the deal to close between July and September.

Last week, US Senator Cory Booker held a hearing featuring actor Mark Ruffalo to oppose the merger, which is likely to lead to significant job cuts. Former CNN anchor Jim Acosta, according to The Guardian - World, expressed concern about the Trump-friendly Ellison family taking over CBS News and potentially re-aligning the channel to appeal to political conservatives. In official statements, outgoing CEO David Zaslav called the vote a key milestone, and a Paramount Skydance spokesperson said they look forward to closing the transaction.

I think the question is not just whether he'll intervene, but how many of his fellow state attorneys general will join him.

Alvaro Bedoya, Former Federal Trade Commission member

This is not a done deal. This deal can get blocked. I personally think it will get blocked or undone.

Alvaro Bedoya, Former Federal Trade Commission member

I think that the danger is very real that a propaganda network will emerge from this merger and the shareholders need to be asking themselves, 'Is what they're about to do going to be good for America?'

Jim Acosta, Former CNN anchor
Sourced
Daily Mail - MoneyThe Guardian - World
2 publications
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Shareholders approve Warner Bros Discovery-Paramount merger | Reed News