Paramount to acquire Warner Bros. Discovery in $110 billion deal

Paramount Skydance Corporation and Warner Bros. Discovery (WBD) have entered into a definitive merger agreement under which Paramount will acquire WBD, creating a combined global media and entertainment company. The transaction values WBD at an enterprise value of $110 billion and is expected to close in the third quarter of 2026, subject to regulatory approvals and shareholder consent.

Under the agreement, Paramount will acquire all outstanding shares of WBD at $31 per share in cash. The deal has been unanimously approved by the boards of both companies. If the transaction is delayed beyond September 30, 2026, WBD shareholders will receive a quarterly ticking fee.

The merger brings together two major film and television studios, streaming platforms and linear networks, with a combined portfolio spanning theatrical films, scripted and unscripted television, sports, news and direct-to-consumer services. The combined entity will own a content library of over 15,000 film titles and thousands of hours of television programming, including franchises such as Harry Potter, Game of Thrones, Mission: Impossible, DC Universe, Star Trek and SpongeBob SquarePants.

A key strategic focus of the merger is scale in streaming. Paramount+, HBO Max and Pluto TV will be combined into a single, more competitive direct-to-consumer ecosystem aimed at improving reach, engagement and monetisation in an increasingly crowded streaming market.

The companies have also committed to maintaining theatrical releases, with a minimum global 45-day theatrical window for films, alongside continued licensing to third-party platforms. Both studios will remain active buyers and sellers of content within the broader industry ecosystem.

Paramount expects the transaction to generate more than $6 billion in synergies through technology integration, operational efficiencies and consolidation of streaming infrastructure. The deal is backed by $47 billion in new equity investment led by the Ellison Family and RedBird Capital Partners, along with committed debt financing.

Commenting on the merger, David Ellison, chairman and CEO of Paramount, said, “By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders.”

David Zaslav, president and CEO of Warner Bros. Discovery, added, “Our guiding principle has been to secure a transaction that maximizes the value of our iconic assets while delivering certainty for our investors.”

Additionally, in connection with the entry into the merger agreement, Paramount has terminated its all-cash tender offer to acquire all outstanding shares of WBD.