In a major media consolidation, Paramount Skydance has signed a definitive agreement to acquire Warner Bros. Discovery (WBD) for approximately $110 billion or $31 per share in cash.
The deal, announced February 27, 2026, ends a months-long bidding war with Netflix.
The boards of both companies unanimously approved the transaction, expected to close in Q3 2026 subject to WBD shareholder approval, regulatory clearances, and other conditions.
A $0.25 per share ticking fee applies quarterly if closing is delayed past September 30, 2026.
Paramount committed a $7 billion reverse termination fee if the deal does not pull through.
How it unfolded
Late 2025: WBD explored options amid streaming pressures and cord-cutting. It agreed to sell its studios and streaming (HBO/Max) to Netflix for approximately $82.7 billion ($27.75/share).
Paramount Skydance led by David Ellison launched a hostile bid for the full company, escalating offers.
February 2026: Paramount raised its offer to $31/share, covering WBD’s $2.8 billion termination fee to Netflix and adding equity support.
February 26: WBD’s board deemed it a “superior proposal,” giving Netflix four days to match.
Netflix declined, calling the price “no longer financially attractive” and prioritizing discipline. Netflix received the $2.8 billion fee.
David Ellison stated the combined company will drive value through “storytelling combined with world-class technology expertise.” WBD’s David Zaslav praised the outcome for shareholders and the industry.
The combined entity will control major assets including Warner Bros. studios, HBO/Max, CNN, Paramount Pictures, Paramount+, and CBS, creating a leading player in film, television, streaming, and news.
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