Paramount to Acquire Warner Bros in $110B Merger

In one of the year’s biggest corporate deals, Paramount Skydance agreed to acquire Warner Bros Discovery (WBD) for about $110 billion, ending a three-way bidding war with Netflix. The cash-and-stock offer values WBD’s equity at ~$81 billion. Paramount’s winning bid of $31 per share bested Netflix’s $27.75, convincing WBD’s board that Paramount’s terms were superior. Warner shareholders are expected to vote on the merger in spring 2026, with closing likely in Q3 if regulators approve.

The merger will create a global media giant spanning movies, TV and streaming. The combined company will own massive content libraries (15,000+ titles) and franchises from “Harry Potter” and “Game of Thrones” to the DC universe. It will also merge networks like CNN and CBS. Paramount, backed by Ellison’s RedBird and other investors, will finance the deal with ~$47 billion equity and $54 billion debt. The companies forecast $6+ billion in cost synergies via merged operations. However, regulators are already scrutinizing the deal: the California AG has vowed a “vigorous review” of this $110 billion transaction.

Market reaction was muted: Paramount’s stock rose ~3% on the news, Netflix fell 1% (it stands to get a ~$2.8 billion breakup fee). Some analysts note the deal’s heavy debt load and political implications (Paramount’s owners have Trump ties) could complicate matters. As one media strategist remarked, Netflix “ended up being the biggest winner… by driving a bidding war that raised the price Paramount had to pay,” thus leaving Paramount/WBD with more leverage. If approved, this merger could reshape Hollywood by creating stronger economies of scale – potentially spurring further consolidation if other players fear falling behind.