Home / Business and Economy / Paramount Skydance Buys Warner Bros. in $110B Media Mega-Deal
Paramount Skydance Buys Warner Bros. in $110B Media Mega-Deal
28 Feb
Summary
- Paramount Skydance announced Warner Bros. Discovery acquisition for $110 billion.
- Netflix exited the bidding, unable to match Paramount's final offer.
- The deal combines CNN, HBO, DC Universe, Harry Potter, and SpongeBob.
Paramount Skydance has officially announced its intention to acquire Warner Bros. Discovery in a landmark $110 billion transaction. This significant deal concludes a five-month bidding war, with Netflix ultimately withdrawing its offer after being outbid by Paramount's final proposal.
The combined entity will integrate celebrated franchises like Harry Potter, Game of Thrones, and the DC Universe, along with major networks including CNN, HBO, and Nickelodeon. The agreement, valued at $81 billion in equity plus debt, has received unanimous approval from both companies' boards. Shareholders are expected to see the deal close in the third quarter of 2026.
This merger faces considerable regulatory scrutiny, with reviews pending from the European Commission and several US states, including California. Financing for the acquisition involves sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, which may draw additional national security concerns. Paramount has secured the transaction with a $7 billion termination fee.
David Ellison, CEO of Paramount Skydance, expressed a vision to honor legacy while building a next-generation media company. The acquisition was significantly backed by Oracle billionaire Larry Ellison, father of David, who is a known ally of former President Donald Trump. Both companies had sought favor with the White House during the bidding process.
