Hollywood Shake-Up: Paramount Skydance to Acquire Warner Bros Discovery in $110 Billion Deal

Paramount Skydance will acquire Warner Bros Discovery in a $110 billion deal, culminating a bidding war involving Netflix. The acquisition, expected to close in 2026, will create a media powerhouse with an expansive film catalog. The merger faces regulatory scrutiny in California but is likely to clear EU antitrust hurdles.

In a landmark $110 billion deal, Paramount Skydance is set to acquire Warner Bros Discovery, ending a fierce bidding contest after Netflix departed from its original agreement with Warner. Initially reported by Reuters, the acquisition is slated to conclude in the third quarter of 2026.

Netflix was outbid when they declined to match Paramount's $31-per-share proposal, which was deemed more attractive than their own $27.75-per-share deal for Warner's studio and streaming assets. Bruce Campbell, Warner Bros' chief revenue officer, confirmed Netflix's final decision not to contest Paramount’s offer during a company town hall meeting.

Paramount, backed by major investors and a $3.25 billion stock rights offering, anticipates $6 billion in savings post-merger through technology integration and streamlined operations. Although the deal elevates Paramount’s status in Hollywood, it faces scrutiny from California regulators. However, EU antitrust approval is expected to be straightforward, suggesting minimal hurdles for the merger to proceed.