Hollywood Pushes Back on Warner Bros. Deal. Wall Street Has Doubts, Too. -- Barrons.com

Dow Jones04-14

By Angela Palumbo

More than 1,000 professionals in the film and television industry signed a letter on Monday opposing the proposed merger of Paramount Skydance and Warner Bros. Discovery.

The letter -- signed by Hollywood stars such as Glenn Close, Emma Thompson, Jason Bateman, and Marisa Tomei -- states consolidation of the media industry is hurting both consumers and creative professionals.

"This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries -- and the audiences we serve -- can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world," the letter said.

Several lawmakers also have spoken out in opposition to the deal, alleging it will negatively impact consumers.

Warner Bros. shareholders will vote on the proposed merger with Paramount on April 23. Wall Street isn't showing confidence in its success.

Paramount said on Feb. 27 that it had agreed to pay $31 a share in cash for Warner Bros. Shares of Warner Bros. initially jumped on the news, peaking at $28.50 on March 2.

The stock is now down 3.9% from that level to $27.41, which is a 13% spread from the $31 a share price Paramount agreed to pay. That is relatively high and implies shareholders have doubts the deal can go through.

"This sustained spread likely suggests that the market continues to assign meaningful risk to the transaction, reflecting uncertainty as to whether the merger will obtain the remaining regulatory clearances and close on the current terms," proxy advisory firm Glass Lewis wrote in a report on April 10.

Paramount said Monday it "remains deeply committed to talent, and this merger strengthens both consumer choice and competition, creating greater opportunities for creators, audiences and the communities they live and work in."

Warner Bros. didn't immediately respond to a request for comment.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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April 13, 2026 13:40 ET (17:40 GMT)

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