Blockbuster Deal: Paramount Acquires Warner Bros Discovery for $110 Billion

Paramount Skydance has acquired Warner Bros Discovery in a $110 billion deal. The acquisition creates one of the world's largest film studios and includes debt of $29 billion. The merger is expected to pass EU antitrust scrutiny but faces investigation by the California Attorney General.

In a landmark transaction, Paramount Skydance has reached an agreement to acquire Warner Bros Discovery for an astounding $110 billion, as detailed in a global townhall audio clip reviewed by Reuters. The deal positions Paramount as a potent force in the entertainment industry by melding its resources with Warner's extensive IP, including valuable franchises like 'Fantastic Beasts' and 'The Matrix'.

Netflix, exercising its right, opted not to counter Paramount's offer, prompting Warner to finalize talks with its new acquirer. The agreement marks the culmination of a fervent bidding war, with Paramount's $31-per-share bid outshining Netflix's $27.75 proposal. This decision has been well-received in the market, with Paramount's shares rising by 24% and Netflix's by 13%.

Notably, the merger, despite its magnitude, is not anticipated to face significant obstacles in securing European Union antitrust clearance. Although some divestments may be required, these are expected to be minimal. However, California's Attorney General, Rob Bonta, is conducting an investigation to ensure the deal's compliance with state laws, underscoring the scrutiny it faces. Meanwhile, the proposed merger raises concerns about potential job cuts and lesser cinematic releases.