Warner Bros Discovery agrees to be acquired by Paramount Skydance in $110 billion deal

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

Paramount Skydance has finalized its bid to acquire Warner Bros. Discovery, marking a significant shift in the high-profile takeover battle for the Hollywood studio.

According to Reuters, Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a deal valued at $110 billion, with an equity value of $81 billion.

The merger is expected to close in the third quarter of 2026, creating a media powerhouse by combining major studios and networks such as CNN and CBS.

Combining Forces: A Media Powerhouse in the Making

• The new combined entity will boast a film library of over 15,000 titles, including popular franchises like Game of Thrones, Mission Impossible, Harry Potter, and the DC Universe.
• The merger would create a massive media company, combining the strengths of both Paramount and Warner Bros. Discovery.

Rationale Behind the Deal

For months, Netflix had been the favourite to close the deal, but Paramount eventually upended the streaming giant's USD 27.75-per-share agreement with its latest USD 31-per-share offer.

• Netflix's deal was valued at USD 83 billion, but Paramount's offer of $110 billion proved to be superior.
• Warner Bros. executives gave Netflix four business days to come up with a better counteroffer, but the streaming giant refused.

Shareholders to Vote on Proposed Merger

Warner Bros. shareholders are expected to vote on the proposed merger in early spring of 2026, with the new company pledging to maintain both studios and produce a minimum of 30 theatrical films annually.

Industry Concerns Raised Over Merger

Cinema operators and industry insiders have raised concerns that combining large Hollywood studios could cost jobs, with the Writers Guild of America stating that the loss of competition would be a disaster for writers, consumers, and the entire entertainment industry.

• Deal value: $110 billion
• Equity value: $81 billion
• Number of films in library: over 15,000