NEW YORK: Paramount Skydance has announced that it will acquire Warner Bros. Discovery in a transaction valuing the combined entity at $110 billion, concluding a competitive bidding process that also involved Netflix. The agreement, confirmed on Friday, marks one of the largest media mergers in recent years and brings together some of the most recognized entertainment brands under a single corporate structure. The deal implies an equity value of $81 billion, with the overall valuation reaching $110 billion when including the debt that Paramount will assume as part of the transaction. Both companies’ boards have unanimously approved the merger, which is expected to close in the third quarter of 2026, subject to regulatory clearance.
The merged entity will house an extensive portfolio of media and entertainment assets, including CNN, CBS, HBO and Nickelodeon, alongside globally recognized franchises such as Harry Potter, Game of Thrones, DC Universe, Mission: Impossible and SpongeBob SquarePants. Paramount has offered $31 per share in cash for all outstanding Warner Bros Discovery shares. The acquisition closes a five month contest that ended after Netflix declined to match Paramount’s revised offer. Market reaction was swift, with Paramount shares rising more than 20 percent while Netflix shares also gained as investors assessed the implications of the outcome.
Paramount chairman and chief executive officer David Ellison said the pursuit of Warner Bros Discovery was driven by a strategy to combine legacy media strengths with next generation distribution and content capabilities. The transaction is backed financially by Larry Ellison, co founder of Oracle, who provided financial assurances that ultimately secured Warner’s board approval. The merger also includes financing commitments from sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi, adding an international dimension to the ownership structure. Paramount has agreed to a $7 billion regulatory termination fee if the deal fails due to approval issues and has covered the $2.8 billion breakup fee previously owed to Netflix.
The merger now faces regulatory examination in multiple jurisdictions. The European Commission is reviewing the transaction, while authorities in several United States states, including California, have indicated that scrutiny will be applied before granting approval. Analysts suggest that if clearance is secured, the combined company may undertake cost rationalization measures to manage its expanded debt profile. The transaction reflects ongoing consolidation in the global media sector, as companies seek scale, diversified revenue streams and competitive positioning in a rapidly evolving digital entertainment landscape.
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