Paramount Skydance to Acquire Warner Bros. Discovery in $110 Billion Deal

Paramount Skydance has reached an agreement to acquire Warner Bros. Discovery (WBD) in a deal valued at approximately $110 billion, ending a bidding war that saw Netflix withdraw its offer. The acquisition is expected to close in the third quarter of 2026, subject to regulatory approvals.

Netflix Exits the Bidding War

The deal materialized after Netflix declined to match Paramount Skydance’s latest offer of $31 per share for WBD, which Warner Bros. Discovery’s board determined to be a “superior proposal” to Netflix’s previous agreement of $27.75 per share. CBS News reported on this development on February 27, 2026.

Bruce Campbell, Warner Bros.’ chief revenue and strategy officer, confirmed Netflix’s decision during a global town hall, stating, “Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands.”

Deal Funding and Synergies

The acquisition will be financed through $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. Wikipedia details the financial structure of the deal.

Paramount also intends to launch a rights offering of up to $3.25 billion of Class B stock for existing shareholders. The companies anticipate realizing over $6 billion in savings through technology integration, corporate efficiencies, and streamlined operations.

Content Portfolio and Market Impact

The combined entity will possess a vast content library exceeding 15,000 titles, including popular franchises such as ‘Game of Thrones,’ ‘Mission Impossible,’ ‘Harry Potter,’ and the DC Universe. This merger aims to bolster Paramount’s streaming efforts by potentially combining HBO Max and Paramount+, creating a stronger competitor to market leader Netflix.

Regulatory Scrutiny

The $110 billion merger is expected to face rigorous regulatory review. California Attorney General Rob Bonta has announced that California is already investigating the deal and will conduct a “vigorous” review. Wikipedia highlights the regulatory challenges.

However, Paramount is anticipated to secure European Union antitrust approval with minimal required divestments, according to CNBC.

Hostile Bid and Breakup Fees

Paramount initiated a hostile bid for Warner Bros. Discovery late last year, consistently increasing its offer to entice the board back to negotiations. The company increased the termination fee to $7 billion from $5.8 billion should the deal fail to gain regulatory approval. Paramount also paid Warner Bros. Discovery the $2.8 billion termination fee owed to Netflix.

Activist investor Ancora Holdings, a Warner Bros. Discovery shareholder, had previously urged the company to engage further with Paramount.