Paramount to Acquire Warner Bros. Discovery in $110B Deal as Netflix Declines to Match

Paramount Skydance has reached a definitive agreement to acquire Warner Bros. Discovery for $31.00 per share in cash, reshaping the streaming and media landscape. The transaction values WBD at an enterprise value of $110 billion and follows Netflix's decision not to match Paramount's revised bid.



Just months after Netflix signed a definitive agreement to acquire Warner Bros. and HBO, the company has formally declined to raise its offer. Netflix said Paramount's latest proposal constituted a "Superior Proposal" under the prior merger terms. Co-CEOs Ted Sarandos and Greg Peters stated that matching the bid was no longer financially attractive. Netflix said it will continue investing approximately $20 billion in content this year and resume its share repurchase program.


Under the new agreement, Paramount will acquire 100 percent of WBD, valuing the company at $81 billion in equity value. The merger brings Paramount+, HBO Max, and Pluto under one corporate structure and combines a portfolio of more than 15,000 film titles and thousands of hours of television programming. Major franchises include Harry Potter, Game of Thrones, Mission Impossible, Top Gun, Lord of the Rings, the DC Universe, Star Trek, Transformers, and SpongeBob SquarePants.

The combined company will hold an extensive sports rights portfolio, including the NFL, Olympics, UFC, PGA Tour, NHL, Big Ten and Big 12 Football, NCAA College Basketball, and the Champions League. These rights can be distributed collectively across streaming and broadcast platforms, positioning the company more competitively as technology firms such as Apple expand their own sports offerings, including exclusive U.S. Formula 1 and MLS coverage.

Paramount has committed to producing at least 30 theatrical films annually, with 15 releases per studio each year. Every film will receive a full theatrical release with a minimum 45-day global window before becoming available on paid video-on-demand, with major titles expected to target 60 to 90 days or longer. The company expects to generate more than $6 billion in projected cost synergies through technology integration, consolidated streaming infrastructure, procurement savings, and real estate optimization.

The transaction is funded by $47 billion in new equity through the issuance of Class B Paramount shares at $16.02 per share, fully backed by the Ellison Family and RedBird Capital Partners, along with $54 billion in debt commitments. The deal is not subject to financing conditions. Both boards have unanimously approved the merger, which is expected to close in the third quarter of 2026, pending regulatory clearance and shareholder approval. If the transaction has not closed by September 30, 2026, WBD shareholders will receive a $0.25 per share ticking fee for each quarter, measured daily, until closing.