Paramount Skydance has agreed to acquire Warner Bros. Discovery in a blockbuster deal valuing the combined company at around $110 billion, bringing to an end a bruising bidding war with Netflix and reshaping the global media landscape.
Announcing the agreement on Friday, Paramount chairman and chief executive David Ellison said the pursuit of Warner Bros. Discovery had been driven by “a clear purpose: to honour the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company”.
The merged group will house some of Hollywood’s most recognisable brands, including CNN, HBO and Nickelodeon, alongside major franchises such as Harry Potter, Game of Thrones, the DC Universe, Mission: Impossible and SpongeBob SquarePants.
Shares in Paramount Skydance surged more than 20 per cent before the announcement, closing at $13.51. Netflix stock also rose after it confirmed it would not raise its offer, triggering a $2.8 billion break-up fee.
Warner’s board said Paramount’s latest proposal of $31 per share for the entire company was superior to its previous agreement with Netflix, which had bid $27.75 per share for Warner’s studio and streaming assets, valuing that portion at about $83 billion including debt.
Given four business days to respond, Netflix declined within hours, saying the revised price was “no longer financially attractive”. Co-chief executives Ted Sarandos and Greg Peters said the deal had been “a nice to have at the right price, not a must have at any price”.
The takeover, which still requires shareholder and regulatory approval, would unite two of Hollywood’s remaining legacy studios. It would also place CNN under the same corporate roof as CBS, raising questions in Washington over media concentration and political influence.
Democratic Senator Elizabeth Warren described the potential tie-up as an “antitrust disaster”, warning that a handful of powerful billionaires were seeking greater control over what Americans watch.
