Warner Bros’ investors have backed Paramount’s takeover, bringing the $111bn (£82bn) deal to reshape Hollywood a step closer.
An initial count of votes at an investor meeting found shareholders “overwhelmingly” supported the takeover by Paramount Skydance, the Hollywood giant run by the billionaire Ellison family.
The investor support means the tie-up between two of Hollywood’s biggest studios will probably be completed by the third quarter of this year, though it still requires approval by regulators.
Investors are backing the deal despite a widespread backlash in Hollywood, with claims that it will narrow the range of films and TV programmes made and give outsized influence to Donald Trump’s allies.
Larry Ellison, the Oracle billionaire and long-time supporter of the US president, is helping to fund the deal. His son, David Ellison, runs Paramount.
It has fuelled fears that the Ellison family will have outsized influence over the US media through their control over the Hollywood studios and their media assets, including CBS News and TikTok’s US division.
More than 1,000 actors, directors and film-makers warned in an open letter earlier this month that the takeover risked driving further consolidation in “an already concentrated media landscape”, leading to “less choice for audiences” and “fewer opportunities for creators”.
Actors including Jane Fonda, Glenn Close and Ben Stiller signed the letter, which also voiced concerns that the deal “prioritises the interests of a small group of powerful stakeholders over the broader public good”. Thousands more Hollywood A-listers subsequently signed the letter, including Robert De Niro and Sofia Coppola.
David Ellison has insisted the combination of the two Hollywood studios will not lead to fewer productions or cinematic releases.
The transaction will be partly funded by RedBird Capital, a US private equity fund that mounted a takeover bid for The Telegraph before abandoning it last year. RedBird is Paramount’s second-largest shareholder.
Paramount has also secured funding from Gulf sovereign wealth funds including Saudi Arabia, the United Arab Emirates and Qatar. Paramount has insisted the Gulf states will not be able to influence the management of the combined company.
Samuel Di Piazza Jr, the chairman of Warner Bros, said: “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Paramount Skydance was formed in August last year through a takeover of Paramount Global by Skydance Media, the film company started by David Ellison in 2006.
Paramount was contacted for comment.