Paramount buys Warner Bros.

Paramount Skydance Corporation announced on February 27, 2026, that it has entered into a definitive agreement to acquire Warner Bros Discovery (WBD) in a transaction valued at approximately $110 billion, including debt. The all-cash offer values WBD shares at $31 each, with an equity value of around $81 billion, marking one of the largest media mergers in recent history and ending a fierce bidding war that had pitted Paramount against streaming giant Netflix. The blockbuster deal will reshape Hollywood's movie industry.

The agreement, unanimously approved by the boards of both companies, comes just one day after Netflix withdrew from its prior arrangement to acquire portions of WBD's studio and streaming assets. On February 26, WBD's board deemed Paramount's revised $31-per-share bid a "superior proposal" to Netflix's earlier $27.75-per-share deal for select businesses, triggering a four-day window for Netflix to match. Netflix declined, citing the elevated price as no longer financially attractive, clearing the path for Paramount to claim the prize.

The merger unites two storied Hollywood legacies under the Paramount Skydance umbrella, combining Warner Bros. Pictures--the home of iconic franchises like Batman, Superman, Harry Potter, and The Lord of the Rings--with Paramount Pictures, known for Star Trek, Mission: Impossible, and Top Gun. It also merges streaming platforms Paramount+ and Max (formerly HBO Max), bolsters linear networks including CBS and CNN, and creates a powerhouse content library spanning films, television, news, and sports. David Ellison, whose Skydance Media completed its own $8 billion acquisition of Paramount Global last year, hailed the move as a step toward "expanding consumer choice and empowering creative talent worldwide."

The deal includes additional safeguards for WBD shareholders, such as a "ticking fee" of $0.25 per share per quarter if the transaction does not close by September 30, 2026, and a $7 billion regulatory termination fee payable by Paramount should antitrust hurdles block the merger. Paramount has already begun seeking regulatory clearances, with reports indicating the U.S. Department of Justice's statutory waiting period passed without challenge earlier this month.

Industry observers note the transaction echoes past mega-mergers like Disney's acquisition of Fox assets and WarnerMedia's 2022 combination with Discovery, but it arrives amid ongoing pressures in the streaming wars, declining linear TV viewership, and heavy debt loads on both sides. Employees at WBD, particularly at CNN, expressed anxiety over potential job cuts, cultural clashes, and integration challenges, with some describing the mood as "beyond bleak" following the news. CEO David Zaslav addressed staff in a town hall, acknowledging the uncertainty while emphasizing that the deal remains subject to approvals.

The transaction requires approval from WBD shareholders, expected in an early spring 2026 vote, along with customary regulatory reviews in the U.S. and potentially Europe. If completed in the third quarter as anticipated, the combined entity would stand as one of the world's dominant media and entertainment conglomerates, controlling two major film studios, leading streaming services, and influential news operations in an era of rapid industry consolidation.