Paramount Buys Warner in $110B Mega Media Deal

New York: US media group Paramount Skydance announced on Friday that it will acquire Warner Bros. Discovery in a deal valued at $110 billion. The agreement comes after Paramount defeated Netflix in a competitive bidding battle that lasted five months.

The merger will create one of the largest entertainment companies in the world. The combined company will own major media brands including CNN, CBS, HBO and Nickelodeon. It will also control popular franchises such as Harry Potter, Game of Thrones, the DC Universe, Mission Impossible and SpongeBob SquarePants.

Deal Structure and Financial Details

Under the terms of the agreement, Paramount will pay $31.00 per share in cash for all outstanding Warner Bros. Discovery shares. This values the company’s equity at $81 billion. When including the significant debt that Paramount will take on, the total deal value reaches $110 billion.

Both companies’ boards have unanimously approved the transaction. The deal is expected to close in the third quarter of 2026, subject to regulatory approvals.

Paramount has also agreed to pay a $7 billion regulatory termination fee if the deal fails due to regulatory issues. Additionally, it has covered the $2.8 billion breakup fee that Warner Bros. Discovery owed Netflix after Netflix withdrew from the bidding process.

Netflix Withdraws from Bidding

Netflix decided to walk away from the deal on Thursday, stating it would not match Paramount’s latest offer. After the announcement, Paramount shares rose more than 20 percent, while Netflix shares increased nearly 14 percent, as investors believed the company avoided a costly acquisition.

Leadership and Political Attention

Paramount chairman and CEO David Ellison said the acquisition aims to respect the legacy of both companies while building a next-generation media and entertainment business.

The takeover is largely financed by Oracle billionaire Larry Ellison, father of David Ellison. Larry Ellison reportedly provided a financial guarantee that helped secure approval from the Warner board.

The deal is also drawing political attention. Larry Ellison is known as an ally of US President Donald Trump, who has said he may review the deal. Both Paramount and Netflix had reportedly engaged with the White House during the bidding process.

Regulatory Review and Global Scrutiny

The merger still faces several regulatory hurdles. The European Commission is reviewing the deal, along with US state authorities, including California. California Attorney General Rob Bonta stated that the deal is “not a done deal.”

The acquisition also includes financing from sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. This foreign investment could bring additional scrutiny related to national security concerns.

If regulators approve the deal, analysts expect cost-cutting measures to reduce the heavy debt load that Paramount will carry after the acquisition.

The merger is set to reshape the global media industry at a time when traditional entertainment companies are facing intense competition and financial pressure.