Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a $110 billion (€101.2 billion) deal, ending a high-stakes bidding war after Netflix declined to match its rival’s improved offer.
The deal is worth $81 billion (€74.5 billion) and is expected to close in Q3 2026, subject to shareholder and regulatory approval. WBD shareholders are set to vote on the proposed merger in spring 2026.
The combination will create a new media heavyweight spanning film studios, streaming platforms and linear networks including CNN, CBS, HBO Max, Discovery+ and Paramount+. The companies said the enlarged group will commit to releasing at least 30 theatrical films annually.
The merged entity will control a library of more than 15,000 film titles and major franchises including Game of Thrones, Mission: Impossible, Harry Potter and the DC Universe.
On Thursday Netflix confirmed it would not raise its $27.75-per-share bid for Warner’s studio and streaming assets after WBD’s board declared Paramount’s $31-per-share proposal superior. Paramount subsequently paid a $2.8 billion (€2.6 billion) termination fee to Netflix.
Paramount said the acquisition will be backed by $47 billion (€43.3 billion) in equity from the Ellison family and RedBird Capital Partners, alongside $54 billion (€49.7 billion) in debt commitments from Bank of America, Citigroup and Apollo. A rights offering of up to $3.25 billion (€3.0 billion) in Class B shares is also planned for existing shareholders.
The companies expect more than $6 billion (€5.5 billion) in cost savings, driven by technology integration, operational efficiencies and corporate streamlining.
Paramount, led by David Ellison, has pursued WBD since late last year, escalating its offer and increasing the reverse termination fee to $7 billion (€6.4 billion) should regulatory approval not be secured.
The deal is likely to face intense scrutiny in the United States, particularly in California. State attorney-general Rob Bonta has confirmed that officials are already investigating the proposed merger and will conduct a “vigorous” review.
By contrast, EU antitrust approval is widely expected to be less contentious, with any required divestments likely to be limited.
Paramount shares rose around 3% in extended trading following confirmation of the deal, while Netflix slipped 1%. Analysts suggested Netflix may ultimately benefit from having driven up the acquisition price while securing a sizeable break fee.
