Discovery shareholders approve $43bn merger with WarnerMedia

The combination would create one of the largest media companies in the world

In May, AT&T announced it would spin-off WarnerMedia, whose assets include HBO, CNN and the Warner Bros studio, and merge it with Discovery. Reuters / Mike Blake

Discovery shareholders voted on Friday to approve the media company's $43 billion merger with WarnerMedia, moving the deal one step closer to completion.

Shareholders approved various measures, such as charter amendments and a share issuance proposal, related to the transaction. They also supported golden parachute payments to executives, in case the transaction fails to close.

Keiran Culkin in a scene from "Succession. " (Macall Polay / HBO via AP)

The outcome was all but assured, as two of Discovery's major investors, John C Malone and Advance/Newhouse, agreed to vote their shares in favour of the merger. They together represent 43 per cent of Discovery's voting shares.

Daniel Radcliffe, Rupert Grint and Emma Watson in Harry Potter and the Philosopher's Stone. Courtesy Warner Bros. Pictures

In May, AT&T announced it would spin-off WarnerMedia, whose assets include HBO, CNN and the Warner Bros studio, and merge it with Discovery. The combination would create one of the world's largest media companies with a breadth of well-known film franchises and television series, including Harry Potter, Lord of the Rings, Succession, the reality-series 90 Day Fiance and Property Brothers.

The transaction has cleared regulatory reviews by the US Department of Justice and the European Commission.

Earlier this week, AT&T and Discovery secured funding for the deal through a $30bn bond offering.

The merger is expected to close as soon as April, with Discovery chief executive David Zaslav leading the new Warner Brothers Discovery.