Paramount Agrees to Acquire Warner Bros. Discovery in Historic $110 Billion Transaction

Warner Bros Discovery to be Acquired by Paramount Skydance in $110 Billion Deal

Paramount Skydance has agreed to acquire Warner Bros Discovery in a $110 billion deal, ending a high-stakes bidding war that saw Netflix walk away from its agreement with the HBO Max owner. The deal, with an equity value of $81 billion, is expected to close in the third quarter of 2026.

The merger will create a media powerhouse, combining major studios and networks such as CNN and CBS to compete more aggressively in the streaming-dominated market. The combined company will boast a film library of over 15,000 titles and popular franchises such as "Game of Thrones," "Mission Impossible," "Harry Potter," and the DC Universe.

The acquisition will be funded by $47 billion in equity from the Ellison Family and RedBird Capital Partners, with additional debt commitments of $54 billion from Bank of America, Citigroup, and Apollo. Paramount also plans a rights offering of up to $3.25 billion of Class B stock for existing shareholders.

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The deal is expected to generate $6 billion in savings, driven by technology integration, corporate efficiencies, and streamlining operations. However, the merger has drawn scrutiny from regulators, including California State Attorney General Rob Bonta, who said that California will be "vigorous" in its review of the deal.

Paramount has deep political connections to the Trump administration, which could help it to get more favorable treatment, according to analysts. The company has been in pursuit of Warner Bros since late last year, when it launched a hostile campaign to wrest the company from Netflix.

The deal is among Hollywood's biggest media shake-ups and will create one of the largest film studios in the world, allowing Paramount to tap Warner's trove of intellectual property, including franchises such as "Fantastic Beasts" and "The Matrix". The new company has pledged to maintain both studios and produce a minimum of 30 theatrical films annually.

Shares of Paramount were up around 3% in extended trading, while those of Netflix were down 1%. Warner Bros shareholders are expected to vote on the proposed merger in early spring of 2026.

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