Paramount Scores Key Win on the Road to a Warner Bros. Takeover

Grab your popcorn, because Hollywood just served up another giant, bonkers merger that’s almost too big to wrap your head around. If you thought the streaming wars were messy before, just wait until you see what’s (maybe) about to happen with Warner Bros. Discovery and Paramount Skydance. Yes, we're on the verge of a new entertainment Franken-company, one that could make even your cable company look nimble by comparison.

The All-Star Cast (With a Few Critics)

First, let’s run down what’s really on the table. The merger is a $111 billion deal—yeah, that's not a typo, $111 billion—with Paramount CEO David Ellison angling to take over the reins. Ellison didn't exactly get a standing ovation from Warner execs in the beginning (they were, let's say, pretty lukewarm about the idea), but he’s pushed hard for this thing recently and clearly convinced the right folks.

The deal actually survived a full-on, backlot-sized pushback from over 3,000 industry insiders—sounds like about everyone in Hollywood, minus the people at craft services—but that didn’t slow Ellison down. He had to beat out Netflix and Comcast in the bidding war, by the way, which was like the streaming version of the Red Wedding. Paramount came out on top, if survival is what you call it.

So, What’s WarnerMount?

If everything goes through, “Warnermount” (because apparently these megamergers now need cringey Brangelina nicknames) will combine two major studios and pretty much annex half of cable TV as we know it. We're talking TNT, TBS, CNN, HGTV, MTV, Nickelodeon, Comedy Central—the gang’s all here. And don’t forget HBO Max and Paramount+ could be mashed together into one super-streamer, which is either the best or worst thing to happen to your backlog, depending on your tolerance for endless reboots and spin-offs.

The Boardroom Drama

The Warner Bros. Discovery board already gave this deal an 'overwhelming' thumbs up. CEO David Zaslav is treating himself to the world’s most expensive sendoff—he's cashing out with up to $886 million in stock returns. Not too shabby for a guy overseeing a company most people just yell at for pulling 'Friends' off their favorite app.

'Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders,' Zaslav said, while probably booking an absurdly fancy vacation.

He also reminded everyone, in true CEO fashion, that Warner Bros. Discovery is back on top after four years of 'transformation,' and that Paramount and Warner are now destined to fuse into a ‘next-generation entertainment company.’

But Wait—Is This Even Legal?

This is Hollywood, so of course there’s drama. The plot twist? Lawmakers are raising alarm bells that all this merging could be a national security issue. Big reason: there’s loads of Gulf State sovereign wealth fund money involved. While these investors can’t vote at the table, people are nervous about who might get to influence what’s reported on CBS and CNN. Sound paranoid? Maybe. Is it a legit worry? Also maybe.

On top of that, state attorneys general aren’t buying what the companies are selling—there’s already loud opposition over antitrust concerns. Basically: too much media under one roof can get dicey, fast.

The Sequel: Regulatory Hurdles Galore

Let’s be clear, this isn’t a done deal. All the government watchdogs, trustbusters, and not-very-entertained lawyers are about to have their say. There’s a good chance this could drag out and get even messier before anybody changes their app subscriptions.

• Ellison promises at least 30 theatrical releases from the new combined company.
• Streaming will continue to get funding, but industry people are pretty skeptical considering the massive debt this merger will rack up.
• If the regulatory sharks smell blood, this could wind up at the center of a major antitrust battle, and it’s going to get loud.

If you’re into corporate soap operas, keep the remote handy—Warnermount is just getting started, and it’s already got more twists than half the shows it owns.