In a deal set to reshape the entertainment landscape, Paramount Skydye has agreed to acquire Warner Bros Discovery for approximately $110 billion, the companies announced Friday. The merger brings an end to a fierce bidding war after Netflix opted not to match the winning offer.
The transaction, valued at $81 billion in equity, is expected to close in the third quarter of 2026. The combined entity will create a media giant with an extensive film library of over 15,000 titles and ownership of major franchises including “Game of Thrones,” “Mission Impossible,” “Harry Potter,” and the DC Universe. Iconic networks such as CNN and CBS will also fall under the same corporate umbrella.
Netflix declined on Thursday to raise its $27.75-per-share bid for Warner Bros’ studio and streaming assets, allowing Paramount’s $31-per-share offer to prevail. Warner Bros received the final contracts from Paramount on Saturday and, after two days of intense negotiations, determined the offer was superior, according to a source familiar with the discussions.
The merger is expected to generate more than $6 billion in savings through technology integration, corporate efficiencies, and streamlined operations. Financing for the acquisition includes $47 billion in equity from the Ellison Family and RedBird Capital Partners, along with $54 billion in debt commitments from Bank of America, Citigroup, and Apollo. Paramount is also planning a rights offering of up to $3.25 billion in Class B stock for existing shareholders.
Warner Bros shareholders are scheduled to vote on the proposed merger in early spring 2026. Following the announcement, Paramount shares rose approximately 3% in extended trading, while Netflix shares dipped 1%.
However, the deal has already drawn scrutiny. California regulators have signaled they will conduct a vigorous review of the merger, which could have significant implications for Hollywood. The combined company would become one of the world’s largest film studios, with a commitment to maintaining both studios and producing a minimum of 30 theatrical films annually.
The Writers Guild of America quickly voiced opposition, stating that “the loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked.”
Lawmakers from both parties have expressed concerns that the deal could lead to fewer choices and higher prices for consumers. Cinema operators have also raised alarms about potential job losses and a possible reduction in theatrical releases.
Despite the regulatory hurdles, Paramount—led by David Ellison, son of billionaire Larry Ellison—maintains deep political connections to the Trump administration, which some analysts believe could work in its favor during the approval process.
As streaming continues to disrupt traditional television, this merger represents one of the most significant media shake-ups in recent memory, positioning the new powerhouse to compete more aggressively in an increasingly digital entertainment landscape.
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