Paramount Skydance to Acquire Warner Bros Discovery in $110 Billion Media Mega-Deal

Paramount Skydance has agreed to acquire Warner Bros Discovery in a landmark $110 billion deal, marking one of the largest mergers in Hollywood history. The agreement, valued at $81 billion in equity, is expected to close in the third quarter of 2026, pending shareholder and regulatory approval. The merger ends a heated bidding war after Netflix chose not to match Paramount’s final $31-per-share offer, which surpassed Netflix’s earlier $27.75-per-share agreement for Warner Bros’ studio and streaming assets.

The combined company will form a powerful media conglomerate, uniting major brands such as CNN and CBS while significantly expanding its streaming and film portfolio. With a library exceeding 15,000 film and television titles, the new entity will control blockbuster franchises including “Game of Thrones,” “Mission: Impossible,” “Harry Potter,” the DC Universe, “Fantastic Beasts,” and “The Matrix.” The companies aim to strengthen their competitive position as streaming continues to disrupt traditional linear television.

The acquisition will be financed through $47 billion in equity from the Ellison family and RedBird Capital Partners, alongside $54 billion in debt commitments from Bank of America, Citigroup, and Apollo. Paramount will also launch a rights offering of up to $3.25 billion in Class B shares. Additionally, Paramount paid a $2.80 billion termination fee to Netflix after securing the deal.

Executives project more than $6 billion in cost savings through technology integration, operational streamlining, and corporate efficiencies. However, the merger faces regulatory scrutiny, particularly in California, where Attorney General Rob Bonta has pledged a rigorous review. While European Union antitrust approval is expected to proceed smoothly, U.S. lawmakers and industry groups, including the Writers Guild of America, have voiced concerns about reduced competition, higher consumer prices, and potential job losses.

If approved, the merger will reshape the entertainment landscape, creating a global media powerhouse poised to dominate film production, streaming services, and broadcast networks.