NEW YORK, United States — In a historic move that will fundamentally reshape the global media landscape, Paramount Skydance announced on Friday, February 27, 2026, that it will acquire Warner Bros. Discovery (WBD) in a deal valued at $110 billion.
The agreement marks the end of a high-stakes, five-month bidding war that concluded after the streaming giant Netflix declined to match Paramount’s final offer, officially walking away from its own previous agreement with WBD.
A New Media Behemoth
The merger unites two of Hollywood’s most iconic “Big Five” studios, creating an entertainment powerhouse with an unparalleled library of intellectual property. The combined company will house:
- Iconic Brands: HBO, CNN, CBS, Nickelodeon, MTV, and Discovery.
- Massive Franchises: Harry Potter, Game of Thrones, the DC Universe, Mission: Impossible, Top Gun, and SpongeBob SquarePants.
- Extensive Library: A collection of over 15,000 film titles and thousands of hours of television programming.
- Broad Sports Rights: Major broadcasting rights for the NFL, Olympics, UFC, PGA Tour, and the Champions League.
Deal Structure and Leadership
Under the terms of the definitive agreement, Paramount will pay $31.00 per share in cash for all outstanding WBD shares.
- Valuation: The deal implies an equity value of $81 billion and a total enterprise value of $110 billion when including assumed debt.
- Funding: The acquisition is backed by $47 billion in equity from the Ellison family (led by Oracle billionaire Larry Ellison) and RedBird Capital Partners, along with $54 billion in debt commitments from Bank of America, Citigroup, and Apollo.
- Synergies: The companies expect to yield over $6 billion in annual savings through technology integration and corporate efficiencies.
David Ellison, Chairman and CEO of Paramount Skydance, will lead the combined entity. “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,” Ellison said in a statement.
Regulatory and Political Scrutiny
Despite the board’s unanimous approval, the deal faces significant hurdles. California Attorney General Rob Bonta has already signaled a “vigorous” review of the merger, while U.S. Senator Elizabeth Warren called it an “antitrust disaster.” Furthermore, the Ellison family’s close ties to the Trump administration and the involvement of Middle Eastern sovereign wealth funds are expected to draw intense federal and national security scrutiny.
The transaction is expected to close in the third quarter of 2026, subject to regulatory clearances and a final vote by Warner Bros. Discovery shareholders.