Paramount Skydance Corporation has entered into a definitive agreement to acquire Warner Bros. Discovery (WBD) in a deal valuing the company at an enterprise value of $110 billion. Under the terms, Paramount will purchase all outstanding WBD shares at $31 per share in cash, following unanimous approval from both boards. The transaction is expected to close in the third quarter of 2026, subject to regulatory and shareholder approvals.
If the deal extends beyond September 30, 2026, WBD shareholders will receive a quarterly ticking fee. The merger will create one of the world’s largest global media and entertainment companies, bringing together film studios, streaming platforms, sports, news and linear television networks.
The combined portfolio will include more than 15,000 film titles and thousands of hours of television content, featuring major franchises such as Harry Potter, Game of Thrones, Mission: Impossible, the DC Universe, Star Trek and SpongeBob SquarePants. A key focus of the merger is strengthening streaming capabilities by integrating Paramount+, HBO Max and Pluto TV into a unified direct-to-consumer ecosystem.
The companies have committed to maintaining theatrical releases with a minimum 45-day global window and continuing content licensing to third-party platforms. Paramount expects over $6 billion in synergies through technology integration and operational efficiencies. The deal is supported by $47 billion in new equity investment led by the Ellison Family and RedBird Capital Partners, along with committed debt financing.
Both CEOs highlighted the merger as a value-driven move designed to enhance scale, competitiveness and long-term growth.
