Paramount Skydance to Acquire Warner Bros. Discovery in $110 Billion Deal

Paramount Skydance Corporation has announced a definitive agreement to acquire Warner Bros. Discovery (WBD) for $110 billion. The deal, approved by both companies' boards, follows Netflix's decision to withdraw from the bidding process, citing financial considerations.

David Ellison, Chairman and CEO of Paramount, stated, "From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company."

Under the agreement, Paramount will pay $31 per share in cash for all outstanding WBD shares. The transaction is expected to close in the third quarter of 2026, pending regulatory approvals and WBD shareholder consent. If the deal extends beyond September 30, 2026, WBD shareholders will receive a $0.25 per share "ticking fee" for each quarter until closing.

The merger aims to combine the strengths of both companies' studios, streaming platforms, and content libraries, featuring franchises such as Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants.

Paramount has secured $47 billion in equity commitments from the Ellison family and RedBird Capital Partners, along with $54 billion in debt financing from Bank of America, Citigroup, and Apollo. The company anticipates achieving $6 billion in synergies through technology integration, corporate efficiencies, and operational streamlining.

California Attorney General Rob Bonta has indicated that the state's Department of Justice will conduct a thorough review of the merger, emphasizing the importance of regulatory scrutiny in such significant transactions.

In response to concerns about industry impact, Paramount has committed to maintaining both Paramount and Warner Bros. as independent studios, each producing a minimum of 15 films annually with full 45-day theatrical windows before transitioning to premium video-on-demand platforms.

The merger is poised to reshape the media and entertainment landscape, pending regulatory approvals and successful integration of the two companies' operations.