Media giants unite, bringing together HBO, CNN, DC Universe, and more in a blockbuster merger.
New York: US media conglomerate Paramount Skydance announced on Friday that it will acquire Warner Bros. Discovery in a deal valuing the combined company at $110 billion, following a fierce bidding war that saw it edge out Netflix.
The agreement concludes a five-month saga and creates a media powerhouse whose influence on the struggling entertainment industry—and its ties to Donald Trump’s White House—will be closely watched.
The combined company will bring together CNN, CBS, HBO, and Nickelodeon, along with some of Hollywood’s most valuable franchises, including Harry Potter, Game of Thrones, the DC Universe, Mission: Impossible, and SpongeBob SquarePants.
Under the agreement, Paramount will pay $31 per share in cash for all outstanding Warner Bros. shares, giving the deal an equity value of $81 billion—rising to $110 billion when including the substantial debt Paramount will assume.
The transaction has been unanimously approved by the boards of both companies and is expected to close in the third quarter of 2026, the companies said.
“Our pursuit of Warner Bros. Discovery has been driven by a clear purpose: to honor the legacy of two iconic companies while advancing our vision of creating a next-generation media and entertainment powerhouse,” said Paramount chairman and CEO David Ellison.
The deal concludes a bidding battle that ended Thursday when Netflix withdrew, unwilling to match Paramount’s final offer.
Regulatory hurdles ahead
Wall Street reacted positively, with Paramount shares rising more than 20 percent on Friday. Netflix also gained nearly 14 percent, as investors suggested the bidding war may not have been worth it for the streamer.
“Netflix’s exit from the race allows it to refocus on its core business, while its closest competitors face lengthy regulatory approvals and the complexities of merger integration,” said HSBC analyst Mohammed Khallouf.
Attention now turns to the Ellison family, who will oversee a vast portfolio of global media assets—albeit shouldering a significant debt burden in the process.
If regulators approve the deal, David Ellison is widely expected to implement a tough round of cost-cutting to manage the debt load.
The takeover was largely financed by his father, Oracle billionaire Larry Ellison, one of the world’s wealthiest individuals, whose financial guarantee ultimately convinced the Warner Bros. board to approve the transaction.
Larry Ellison is also a longtime ally of President Donald Trump, who indicated he might weigh in on the deal. Both Paramount and Netflix sought to gain favor with the White House, with Paramount ultimately prevailing.
The merger still faces regulatory hurdles. The European Commission is reviewing the transaction, as are several US states, including California.
“Paramount/Warner Bros. is not a done deal,” said California Attorney General Rob Bonta on Friday.
Paramount’s offer also includes financing from three Middle Eastern sovereign wealth funds—from Saudi Arabia, Qatar, and Abu Dhabi—which could draw additional scrutiny over national security implications.
Paramount has agreed to pay a $7 billion regulatory termination fee if the deal fails to close due to regulatory issues, and has also covered the $2.8 billion breakup fee that Warner Bros. Discovery owed Netflix after the streamer withdrew from their agreement.
