United States – Paramount Skydance Corporation has entered into a definitive agreement to acquire Warner Bros. Discovery in a cash transaction valued at $81 billion in equity value and $110 billion in enterprise value, the companies announced on February 27. This follows recent news of Netflix exiting the bidding war to acquire WBD.
Under the terms of the deal, Paramount Skydance Corporation will pay $31.00 per share in cash for all outstanding shares of Warner Bros. Discovery. If the transaction has not closed by September 30, 2026, WBD shareholders will receive a $0.25 per share “ticking fee” for each quarter, measured daily, until completion.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and approval by WBD shareholders. A shareholder vote is expected in early spring 2026.
The combined company is expected to bring together film and television studios, streaming platforms, and linear networks across a broad international footprint. The companies said the merger would expand consumer choice and create new opportunities for creative talent.
David Ellison, chairman and CEO of Paramount, a Skydance Corporation, said: “From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead.”
David Zaslav, president and CEO of Warner Bros. Discovery said: “I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction.”
The companies said the merger would combine a portfolio of more than 15,000 film titles and thousands of hours of television programming, including franchises such as Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe and SpongeBob SquarePants.
They also outlined plans to maintain both studios and target 15 theatrical feature films per year per studio. Each film will receive a full theatrical release with a minimum 45-day global window before becoming available on paid video-on-demand, with the intention of extending to 60 to 90 days or more for certain releases.
The combined direct-to-consumer offering is expected to unite Paramount+, HBO Max and Pluto into a single competitive streaming platform. The companies said the merger would enhance reach, engagement and monetization capabilities, positioning the new entity as a stronger global streaming competitor.
In addition to entertainment content, the merged company will hold a broad sports rights portfolio, including the NFL, Olympics, UFC, PGA Tour, NHL, Big Ten and Big 12 Football, NCAA College Basketball, and the Champions League, with distribution across multiple platforms.
The companies also cited expected operational efficiencies and cost savings of more than $6 billion, driven by technology integration, corporate-wide efficiencies, procurement savings, real estate optimization and other streamlined operations.
Paramount said its pro forma balance sheet and cash flow would support continued investment in growth initiatives and content production following the close of the transaction.
