Warner Bros. Discovery agreed to be acquired by Paramount Skydance in a $77 billion deal after Netflix pulled out of bidding
The merger includes Warner Bros. film studio, HBO Max streaming platform, and cable channels like CNN, with total value exceeding $110 billion including debt
David Ellison's Paramount Skydance outbid Netflix after raising their offer to $31 per share, paying Netflix a $2.8 billion termination fee
The deal requires regulatory approval from US and EU authorities, with a shareholder vote expected in early spring
📖 Full Retelling
Warner Bros. Discovery on Friday formally signed an agreement to be acquired by Paramount Skydance, setting the stage for one of the most consequential media mergers in recent history after Netflix abruptly pulled out of the bidding war for the media giant's assets, with the deal valuing WBD at roughly $77 billion through a $31 per share offer. The Paramount Skydance offer encompasses the Warner Bros. film studio, the HBO Max streaming platform, and a portfolio of cable channels including CNN, while Netflix's previous proposal did not include the cable assets. The takeover bid, factoring in WBD's debt load, comes to a total of more than $110 billion. The transaction has been unanimously approved by the boards of directors of both media giants, with a shareholder vote expected in early spring. If the transaction doesn't close by September 30, WBD shareholders will receive a $0.25 per share 'ticking fee' for each quarter. The deal still requires approval from the Justice Department and will be reviewed by European Union regulators, with Democrats in Congress also vowing to scrutinize the transaction. Paramount Skydance has included a $7 billion reverse termination fee if regulators block the deal. If approved, the merger would unite two storied Hollywood film studios and create a vast library of intellectual property ranging from 'The Godfather' and SpongeBob Squarepants to 'Casablanca' and Batman, potentially reshaping the media landscape for years to come.
🏷️ Themes
Media Consolidation, Corporate Bidding War, Hollywood Mergers, Regulatory Scrutiny
# Netflix
**Netflix** is an American subscription video-on-demand (SVOD) over-the-top streaming service. It serves as the primary distribution platform for both original and acquired content, including feature films, television series, documentaries, and specials across a vast array of genres and i...
Paramount Skydance Corporation (doing business as Paramount) is an American multinational mass media and entertainment conglomerate. The company is headquartered at the Paramount Pictures lot in the Hollywood neighborhood of Los Angeles, California, with multiple of Paramount's divisions and subsidi...
David Ellison (born January 9, 1983) is an American media executive, film producer, and former actor, currently serving as chairman and chief executive officer (CEO) of Paramount Skydance since August 2025. He is the son of Oracle Corporation co-founder Larry Ellison, a centibillionaire.
He founded ...
BREAKING NEWS Feb. 27, 2026, 9:35 PM UTC Culture & Trends Warner Bros. Discovery signs merger agreement with Paramount Skydance The deal was inked just a day after Netflix abruptly announced it was pulling out of the bidding war for Warner Bros. Discovery’s studio and streaming assets. The Paramount studios in 2025 in Los Angeles. Eric Thayer / Getty Images Share Add NBC News to Google By Daniel Arkin Listen to this article with a free account 00:00 00:00 Warner Bros. Discovery on Friday formally signed an agreement to be acquired by Paramount Skydance, the two companies announced, setting the stage for one of the most consequential media mergers in recent history. The deal was inked just a day after Netflix abruptly announced it was pulling out of the bidding war for Warner Bros. Discovery’s studio and streaming assets, effectively closing the curtains on a corporate battle that had riveted Hollywood. Paramount Skydance’s offer of $31 share values WBD at roughly $77 billion and includes the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels, including CNN. Netflix’s proposal did not include the cable assets. The takeover bid, factoring in WBD’s debt load, comes to a total of more than $110 billion. The transaction was unanimously approved by the boards of directors of both media giants, the companies said in a joint news release, with a vote expected in the early spring. If the transaction has not closed by Sept. 30, WBD shareholders will receive a $0.25 a share “ticking fee” for each quarter. The deal still needs to be approved by Justice Department, and it will be reviewed by European Union regulators. Democrats in Congress have also vowed to scrutinize the transaction . Paramount Skydance’s proposal for WBD includes a $7 billion reverse termination fee if regulators block the deal. If approved, the merger would unite two storied Hollywood film studios and encompass a sprawling library of intellectual property that ranges f...
