NEW YORK—In a landmark transaction reshaping the global media landscape, Paramount Skydance has emerged victorious in acquiring Warner Bros. Discovery for a total enterprise value of $110 billion. The deal, announced Thursday, concludes an intense five-month bidding war that saw streaming giant Netflix withdraw from negotiations after declining to match Paramount’s final offer.
The merger creates an unprecedented entertainment conglomerate, combining Paramount’s assets with Warner Bros. Discovery’s extensive portfolio. The new entity will control some of the world’s most recognizable media brands, including CNN, HBO, Nickelodeon, and powerhouse franchises such as Harry Potter, Game of Thrones, the DC Universe, Mission Impossible, and SpongeBob SquarePants.
Under the acquisition terms, Paramount will pay $31.00 per share in cash for all outstanding Warner Bros. Discovery shares, representing an equity valuation of $81 billion. The transaction, which includes assumption of debt, has received unanimous approval from both companies’ boards of directors, with expected closure scheduled for the third quarter of 2026.
Paramount Chairman and CEO David Ellison stated the strategic move was ‘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.’
The merger’s significance extends beyond corporate consolidation, raising questions about political connections and regulatory scrutiny. The Ellison family, which will control the expanded media empire, maintains notable political ties—Larry Ellison, Oracle billionaire and father of Paramount’s CEO, is a longstanding ally of former President Donald Trump. Both Paramount and Netflix had reportedly sought favor with the current administration during bidding negotiations.
Financing arrangements include backing from three Middle Eastern sovereign wealth funds (Saudi Arabia, Qatar, and Abu Dhabi), potentially attracting additional regulatory examination. Paramount has proactively addressed regulatory concerns by offering a $7 billion termination fee should the deal fail to clear regulatory hurdles, while also covering the $2.8 billion breakup fee Warner Bros. Discovery owed Netflix upon terminating their previous agreement.