Warner Bros. Discovery shareholders approve Paramount Skydance deal

Warner Bros. Discovery shareholders on Thursday voted "overwhelmingly" in favor of the merger with Paramount Skydance, clearing a critical hurdle.

Yes, but: Shareholders did not approve the executive compensation package presented at the meeting. Why it matters: The executive compensation package would have seen CEO David Zaslav earning at least $500 million.

Zoom in: More than 1.4 billion votes were cast against the compensation proposal, versus the 307.7 million in favor. Each share of WBD common stock is entitled to one vote. The compensation proposal was an advisory, non-binding vote and not a condition for completion of the deal. The executives could still earn the payments outlined in the package if the deal closes, regardless of the outcome of the shareholder vote.

Over 1.7 billion votes were cast in favor of the Paramount merger, compared with the roughly 16.3 million against.

Catch up quick: Zaslav has led WBD since 2022. The longtime CEO of Discovery oversaw the acquisition of Warner Media from AT&T four years ago. The combined company's stock languished until Paramount expressed interest in buying the company last year.

What they're saying:

"Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery, building on our successful equity and debt syndications and progress across regulatory approvals," a Paramount spokesperson said in a statement. "We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers."

What's next:
WBD said it expects the deal, which still needs regulatory approvals, to close in the third quarter of this year.