Warner Bros Discovery Signs $110 Billion Acquisition Deal with Paramount Skydance

In one of the biggest media shake-ups in recent history, Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a deal valued at $110 billion, including approximately $29 billion in debt.

The agreement was confirmed during a global townhall, where Bruce Campbell, chief revenue and strategy officer at Warner Bros Discovery, stated that the deal was signed after Netflix declined to match the final offer.

“Netflix had the legal right to match the offer. They ultimately decided not to do that. That resulted in a signed agreement this morning,” Campbell said during the internal meeting.

Neither Paramount nor Warner Bros Discovery immediately issued public comments following the announcement.

A Transformational Hollywood Merger

The deal marks one of Hollywood’s most significant consolidation moves and is expected to create one of the largest entertainment companies globally.

Paramount Skydance will gain access to Warner Bros Discovery’s vast intellectual property portfolio, including blockbuster franchises such as Fantastic Beasts and The Matrix. The merger is also expected to reshape the streaming landscape by potentially combining HBO Max with Paramount+, strengthening the group’s ability to compete with Netflix and other global platforms.

Paramount, led by David Ellison, son of billionaire Larry Ellison, had been pursuing Warner Bros since late last year. The company initially launched a hostile campaign before returning with improved offers.

Bidding War and Revised Terms

The final agreement followed a competitive bidding process. Paramount’s latest offer of $31 per share was considered superior to Netflix’s $27.75 per share bid for Warner’s assets.

To secure board approval, Paramount increased its proposed termination fee from $5.8 billion to $7 billion in case regulatory approval fails.

Activist investor Ancora Holdings, which owns a small stake in Warner Bros Discovery, had also reportedly urged the company to engage further with Paramount during negotiations.

Regulatory and Antitrust Hurdles Ahead

Despite the agreement, the merger is likely to face intense scrutiny from regulators in the United States and internationally. Lawmakers across political lines have expressed concerns that consolidation at this scale could reduce consumer choice and potentially increase prices.

Antitrust reviews are expected in Washington and in several US states, including California, where major studio operations are based.

Cinema operators have also voiced concerns that combining two major studios could reduce theatrical releases and impact employment within the entertainment industry.

Streaming Wars Enter a New Phase

If approved, the acquisition could significantly alter the balance of power in the global streaming war. A combined HBO Max–Paramount+ ecosystem would bring together premium series, blockbuster films, sports rights and news programming under one corporate umbrella.

The $110 billion deal signals that consolidation, rather than fragmentation, may define the next phase of competition in Hollywood.