Paramount Skydance Acquires Warner Bros. Discovery for $110B

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

The all-cash merger ends a high-stakes bidding war with Netflix, uniting franchises like Harry Potter, the DC Universe, and Mission: Impossible under David Ellison.

Marcus J. Delany

Mar 2, 2026, 12:08 AM PT · 2 min read

Paramount Skydance beat Netflix to acquire Warner Bros. Discovery in a $110 billion all-cash deal.

THE RUNDOWN

Paramount Skydance acquires WBD in a $110 billion all-cash deal at $31 per share.
Paramount will pay a $2.8 billion breakup fee to Netflix on behalf of WBD.
The deal is primarily funded by $47 billion in equity from the Ellison Family.
The new entity commits to releasing at least 30 theatrical films every year.
Closing is expected in Q3 2026 following regulatory and shareholder approval.

In a historic shakeup for the entertainment industry, Paramount Global and Warner Bros. Discovery (WBD) have officially entered a definitive merger agreement. Paramount will acquire WBD for approximately $110 billion in an all-cash transaction valued at $31 per share. The deal, which received unanimous approval from both boards of directors, is expected to close in the third quarter of 2026, creating a global media titan with a library of over 15,000 titles.

The agreement follows a intense bidding war that saw Netflix drop out after WBD's board determined Paramount's proposal was superior. To secure the win, WBD anticipates paying the $2.8 billion termination fee owed to Netflix for exiting their previous December agreement. Netflix co-CEOs Ted Sarandos and Greg Peters confirmed the streamer declined to match the offer, stating the transaction was no longer "financially attractive" at the higher price point.

Led by Paramount CEO David Ellison and backed by a $47 billion equity investment from the Ellison Family and RedBird Capital Partners, the new company has pledged to produce at least 30 theatrical releases annually. David Zaslav, CEO of Warner Bros. Discovery, expressed excitement about the combined potential of the two entities. The merger will bring HBO, CNN, CBS, and Nickelodeon under one roof, alongside massive intellectual properties ranging from Game of Thrones to SpongeBob SquarePants.