Warner Bros. Discovery agrees to $110 billion Paramount merger

Warner Bros. Discovery and Paramount Skydance announced a $110 billion merger agreement on Friday, February 27, 2026, creating a massive media company that will fold WBD's studio, linear channels, streaming service, and gaming segment into Paramount, after Paramount's persistent hostile takeover bid proved superior to WBD's initial $83 billion agreement with Netflix. The deal represents a significant shift in the media landscape, as Paramount successfully outbid Netflix in a competitive acquisition process. Initially, WBD had signed an agreement with Netflix valued at $83 billion, but Paramount's persistence with a hostile takeover bid followed by a series of offers ultimately paid off. On Thursday, Netflix declined to match Paramount's final offer, calling it "no longer financially attractive." Under the agreement, Paramount will acquire WBD in a deal valued at $110 billion and has already covered the $7 billion regulatory termination fee and $2.8 billion breakup fee owed to Netflix. The merger, if approved by regulatory authorities and shareholders, would transform Paramount into an entertainment behemoth with an exceptional intellectual property portfolio. The combined company will control popular franchises such as Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants. The companies expect the deal to close in the third quarter of 2026, subject to regulatory and shareholder approval. Paramount Plus, HBO Max, and Pluto are expected to create a "highly competitive" streaming business that "expands both consumer choice and opportunities for creative talent and labor." The merger comes amid significant leadership changes at Paramount, which Skydance only acquired last August, putting David Ellison, the son of Oracle co-founder Larry Ellison (a known ally of President Donald Trump), into the CEO role. Ellison has already made notable changes at Paramount-owned CBS News, including installing The Free Press founder Bari Weiss as editor-in-chief. These changes have raised concerns among staff members at CNN, according to Variety. The deal has also drawn skepticism from lawmakers, with Sen. Elizabeth Warren (D-MA) stating, "A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want."