Paramount Skydance has agreed to acquire Warner Bros Discovery in a $110 billion deal, concluding a competitive bidding process that ended after Netflix declined to raise its offer. The transaction, which carries an equity value of approximately $81 billion, is expected to close in the third quarter of 2026, subject to regulatory approval.
Warner Bros Discovery had been weighing a $27.75-per-share agreement for its studio and streaming assets with Netflix. Paramount ultimately prevailed with a $31-per-share offer, which Warner’s board determined to be superior. Netflix had the contractual right to match the revised bid but chose not to do so, clearing the way for Paramount to finalize the agreement.
To secure the deal, Paramount is assembling a substantial financing package. The transaction will be backed by $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 also plans a rights offering of up to $3.25 billion in Class B stock for existing shareholders. Additionally, Paramount covered the $2.8 billion termination fee Warner Bros owed Netflix after exiting their prior agreement.
The combined company would control a film and television library exceeding 15,000 titles. Key franchises under one roof would include Game of Thrones, Mission: Impossible, Harry Potter, and the DC Universe. Warner’s portfolio also includes properties such as Fantastic Beasts and The Matrix. Consolidating these assets would create one of the largest film studios globally, strengthening Paramount’s negotiating position across theatrical distribution, licensing, and streaming.
Streaming is central to the rationale behind the acquisition. A potential combination of HBO Max and Paramount+ could broaden subscriber reach and content depth, offering a more direct challenge to Netflix’s global scale. Paramount and Warner estimate more than $6 billion in cost savings through technology integration, operational streamlining, and corporate consolidation.
However, the scale of the deal has drawn scrutiny. California regulators are preparing a detailed review, with State Attorney General Rob Bonta signaling a rigorous examination. Lawmakers from both parties have raised concerns about reduced competition, potential job losses, and higher prices for consumers. Cinema operators have also expressed unease about further consolidation in Hollywood, arguing that fewer major studios could lead to reduced theatrical output.
European Union antitrust approval is reportedly expected to be less contentious, with any required divestitures likely to be limited. Still, the U.S. regulatory process may prove decisive given the transaction’s size and its potential impact on media concentration.
If completed, the merger would mark one of the most significant restructurings in modern Hollywood history. Beyond the headline valuation, the long-term implications will depend on execution: integrating large creative organizations, balancing theatrical and streaming priorities, and managing debt while maintaining competitive content output in a rapidly evolving entertainment market.
