Paramount merges HBO Max & Paramount+ to compete with Netflix

Paramount Skydance Corp. will combine HBO Max and Paramount+ into a single streaming platform after signing a $110 billion deal to acquire Warner Bros. Discovery Inc.

The transaction was formally signed on 27 February and is expected to close in the third quarter, subject to shareholder and regulatory approvals. Paramount agreed to pay $31 per share in cash, winning a bidding contest that included Netflix Inc.

David Ellison, chief executive officer of Paramount, said the merged company plans to retain HBO as a brand even after the streaming platforms are integrated.

“Across the two platforms, there are over 200 million D2C subscribers today in more than 100 countries and territories worldwide, positioning us to compete effectively with the leading streaming services in today’s marketplace,” he said.

On an investor call, Ellison added that the company does not plan to reduce production and is targeting at least 30 theatrical releases annually across its studios.

“This is not about consolidation, it’s about reinventing the business,” Ellison said.

Chief financial officer Dennis Cinelli said that for 2026, the combined entity is expected to generate $69 billion in pro-forma revenue and $18 billion in estimated earnings before interest, taxes, depreciation and amortisation. Net debt is projected at $79 billion.

Ellison also outlined the expanded sports portfolio, including rights to the National Football League, Ultimate Fighting Championship, March Madness, the PGA Tour and the Olympics in Europe. He noted that a previously signed $7.7 billion UFC deal provides flexibility to air events on Warner Bros.’ TNT network.

The company said it has no plans to spin off its cable networks following the merger. A shareholder vote is expected in the spring, according to chief operating officer Andy Gordon.

To finance the transaction, Paramount has secured $47 billion in equity backed by the Ellison family and RedBird Capital Partners, alongside plans to borrow $54 billion from Bank of America, Citigroup and Apollo Global Management Inc.

Paramount shares were down 1.9% to $13.26 in morning trading in New York following the announcement.