Mayor Critiques Paramount-Warner Bros. Discovery Merger
New York City Mayor Zoran Mamdani expressed strong opposition to the recent merger between Paramount and Warner Bros. Discovery, labeling it a threat to both employment and consumers. This statement follows the significant approval of the deal by WBD shareholders on Thursday.
“This merger is three times worse for New Yorkers,” Mamdani stated on X earlier that day, just before the shareholder vote.
He continued, noting, “Thousands of jobs are at risk here in the city, streaming prices are likely to rise as competition diminishes, and two of America’s media giants are uniting, controlling what you see and hear.”
The mayor’s remarks concluded with a strong appeal: “With today’s shareholder vote on the merger, New York City will make its position clear. This merger must be stopped.”
Concerns about the merger have been echoed by Hollywood officials, labor representatives, and progressive politicians who see it as a potential threat to competition and creative advocacy. Critics believe it could lead to fewer major studios and limit opportunities for workers and independent creators.
The online response was immediate and polarized, reflecting ongoing discussions about media consolidation.
Support for the merger was voiced by hedge fund manager Daniel S. Loeb, who tweeted, “WBD shareholders vote here,” indicating his approval.
In contrast, some users mocked the alarm over the merger, claiming, “Typical 2026 big media consolidation panic,” while others suggested that new technology and independent creators are already surpassing traditional media.
Additionally, some critics felt that Mamdani’s concerns might be overstated.
Another commenter remarked, “If two companies want to merge, let them do so. It should be their decision alone.”
However, supporters of Mamdani’s viewpoint stressed the potential negative impact of the merger. “A merger that leads to less competition, higher prices, and thousands of New Yorkers losing their jobs? That’s just hardship,” one post noted in support of the mayor’s stance.
Concerns about media concentration were voiced as well, with one user pointing out, “Consumers will benefit with one unified voice, but that raises issues of control.”
The Post has attempted to reach Paramount and WBD for additional comments.
Despite approving the deal, shareholders expressed dissatisfaction with WBD CEO David Zaslav’s compensation package. While they overwhelmingly supported the Paramount-Skydance merger, a majority also voted against Zaslav’s substantial severance package, signaling discontent with executive pay.
This vote was symbolic, as it does not prevent Zaslav from receiving payments that could exceed $500 million.
WBD’s board had previously backed the Paramount-Skydance merger, announcing support after a special general meeting last month.
As it stands, shareholders are set to receive $31 in cash per share, a considerable premium, with the aim to finalize the merger by the third quarter of 2026, pending regulatory approvals.
To finance the deal, Paramount has accrued significant debt, garnering over $20 billion from Gulf sovereign wealth funds, thereby reinforcing a previously shaky financing plan.
However, as the deal progresses, political scrutiny is growing. California Attorney General Rob Bonta has warned that the merger isn’t guaranteed, suggesting increased examination at the state level. Additionally, over 1,000 Hollywood creatives are mobilizing to challenge the merger due to fears of job losses and diminished competition.
