US media giant Paramount Skydance announced Friday it will acquire Warner Bros. Discovery in a landmark agreement valuing the combined company at $110 billion, concluding a fierce bidding battle with Netflix.
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The deal ends a five-month takeover saga and will create one of the world’s largest entertainment groups, bringing together major media brands including CNN, CBS, HBO and Nickelodeon. The merged portfolio will also control globally recognized franchises such as Harry Potter, Game of Thrones, DC Universe, Mission Impossible and SpongeBob SquarePants.
Under the agreement, Paramount will pay $31 per share in cash for all outstanding Warner Bros. Discovery stock, valuing equity at $81 billion and approximately $110 billion including assumed debt. Both companies’ boards have unanimously approved the transaction, which is expected to close in the third quarter of 2026.
Paramount chairman and CEO David Ellison said the acquisition aims to combine the legacy strengths of both companies while accelerating plans for a next-generation global entertainment platform.
The bidding contest ended after Netflix declined to match Paramount’s final offer, with analysts suggesting the streaming company chose to avoid a prolonged regulatory process.
Financial backing for the deal was largely supported by billionaire Larry Ellison, co-founder of Oracle, whose guarantees helped secure board approval. The merger has also drawn political attention due to Ellison’s ties to former US president Donald Trump.
Regulatory scrutiny now represents the biggest hurdle. The European Commission and several US states, including California, are reviewing the merger. California Attorney General Rob Bonta cautioned that approval is not assured.
Additional examination may arise from financing linked to sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, raising potential national security concerns.
Paramount has pledged a $7 billion regulatory termination fee if approvals fail and has already covered a $2.8 billion breakup fee owed to Netflix after its withdrawal from negotiations.
