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In a dramatic twist to Hollywood’s ongoing consolidation saga, Paramount Skydance has announced its intention to acquire Warner Bros Discovery in a landmark deal valued at $110 billion. This monumental merger is anticipated to finalize by the third quarter of 2026.
This agreement concludes a fierce bidding contest, with Paramount’s offer of $31 per share outbidding Netflix’s earlier proposal of $27.75. According to Reuters, this offer targets Warner Bros Discovery’s studio and streaming assets, signaling a significant shift in the entertainment landscape.
Should the deal secure shareholder approval in the spring and pass regulatory scrutiny afterwards, it will bring together powerhouse brands like CNN and CBS. This merger would create an extensive library exceeding 15,000 titles, including juggernaut franchises such as Game of Thrones, Mission: Impossible, and Harry Potter.
The newly formed entity pledges to release a minimum of 30 theatrical films each year, projecting over $6 billion in savings through efficient integration and operations streamlining.
Backed by equity from the Ellison family and RedBird Capital Partners, along with substantial debt financing, the transaction is already under the microscope from regulators and industry watchdogs.
California Attorney General Rob Bonta said the state will be “vigorous” in its review, while the Writers Guild of America warned, “The loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked.”
Paramount also paid a $2.8 billion termination fee tied to Warner’s previous agreement with Netflix. As one analyst put it, “Netflix is the biggest winner in the Warner Bros Discovery sweepstakes. Netflix earns a termination fee paid by Paramount. By driving a bidding war, Netflix raised the price Paramount had to pay, which will ultimately burden Paramount-WBD with more debt.”
One unusual line buried in the disclosures reads: “Sometimes we’re finding that a key tea supplier is just not able to provide the volumes that they did the previous year.”