Paramount Skydance Acquires Warner Bros. Discovery for $111 Billion

Following a months-long bidding war, Paramount Skydance entered a definitive agreement to acquire Warner Bros. Discovery (WBD) in a deal valued at approximately $110 billion to $111 billion. The all-cash offer of $31 per share was deemed a superior proposal by the WBD board, displacing a previous $83 billion agreement with Netflix that targeted only studio and streaming assets at $27.75 per share.

Netflix co-CEOs Ted Sarandos and Greg Peters withdrew their bid on February 26, 2026, stating the required price was "no longer financially attractive." The decision followed a U.S. Department of Justice antitrust probe and political pressure from President Donald Trump, who demanded the firing of Netflix board member Susan Rice. As part of the transition, Paramount agreed to pay Netflix a $2.8 billion termination fee.

The acquisition, backed by a $45.7 billion equity commitment from Larry Ellison and $57.5 billion in debt, brings CNN, HBO, and the Warner studio under the same ownership as CBS and Paramount+. David Ellison pledged to release at least 30 movies annually to protect theatrical windows, though he projects $6 billion in cost savings through job cuts.

The merger faces vigorous regulatory scrutiny. California Attorney General Rob Bonta launched an investigation into potential monopolistic impacts on the entertainment industry. Additionally, lawmakers and the Writers Guild of America expressed concerns over media consolidation and the editorial independence of CNN under the influence of the Trump administration.