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Paramount Skydance said Friday it will acquire Warner Bros. Discovery in a $110 billion deal, ending a months-long bidding battle with streaming giant Netflix.
Under the agreement, Paramount will pay $31.00 per share in cash for all outstanding Warner Bros. shares. The offer implies an equity value of $81 billion and reaches $110 billion when including the debt Paramount will assume.
Both companies’ boards unanimously approved the deal, which is expected to close in the third quarter of 2026.
Paramount shares jumped more than 20% after the announcement, while Netflix climbed nearly 14% and Warner Bros. fell 2.2% as investors responded to the bidding outcome.
Paramount Chairman and CEO David Ellison said the bid was driven by a long-term plan to combine two established media businesses under one structure.
"Our pursuit of Warner Bros. Discovery has been 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," he said.
The takeover followed a competitive process that ended when Netflix declined to raise its offer.
Warner Bros. Discovery informed Netflix on Feb. 26 that a revised proposal from Paramount Skydance constituted a superior bid. Netflix waived its right to negotiate further and told the U.S. Securities and Exchange Commission it would not revise its earlier proposal.
Warner Bros. Discovery terminated its agreement with Netflix on Feb. 27 to proceed with the Paramount transaction. Paramount paid a $2.8 billion termination fee to Netflix on behalf of Warner Bros. Discovery.
Netflix and Warner Bros. Discovery had previously signed an amended merger agreement on Jan. 19, under which Netflix aimed to acquire the streaming and studio operations of Warner Bros. Discovery. The plan also included separating Warner’s global linear networks business before completing the deal.
The cancellation automatically ended four financial arrangements tied to Netflix’s proposal, including a bridge commitment letter and a senior unsecured revolving credit agreement.
The merged group will bring together assets including CNN, CBS, HBO, and Nickelodeon, along with film and television franchises such as "Harry Potter," "Game of Thrones," the DC Universe, "Mission Impossible" and SpongeBob SquarePants.
Paramount’s financing package includes backing from three Middle Eastern sovereign wealth funds—Saudi Arabia, Qatar, and Abu Dhabi—and financial support from Oracle co-founder Larry Ellison.
The agreement faces regulatory review in multiple jurisdictions. The European Commission and several US states, including California, are examining the transaction.
Paramount has committed to a $7 billion regulatory termination fee if the deal fails to close due to regulatory issues.
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