Warner Bros Discovery on Friday morning, signed a $110 billion agreement to be acquired by Paramount Skydance, according to a new report citing an audio recording of a global town hall. This comes after Netflix’s decision not to match Paramount’s revised offer of $31 per share, a bid that Warner Bros considered better than Netflix’s earlier $27.75 per share proposal for its studio and streaming assets.
Paramount is likely to secure European Union antitrust clearance easily, with any required divestments likely to be minor, Reuters reported on Friday, citing sources.
Inside Paramount-Warner Bros Discovery’s $110 billion deal
Bruce Campbell, chief revenue and strategy officer at Warner Bros told staff during the town hall that an agreement had been signed with Paramount Skydance.
“Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands,” he was quoted as saying by news agency Reuters.
Paramount and Warner Bros have yet to formally confirm the signing. Bloomberg reported that Warner Bros is expected to make an announcement later in the day.
The deal, which includes about $29 billion in debt, is one of the largest restructurings in Hollywood. It will create one of the world’s biggest film studios and give Paramount access to Warner’s library of intellectual property, including franchises such as “Fantastic Beasts” and “The Matrix”.
The agreement could also strengthen Paramount’s streaming position. A possible merger of HBO Max and Paramount’s streaming platform may help the combined company expand its market share and compete more directly against Netflix.
Why California is the biggest obstacle to the takeover
California attorney general Rob Bonta said that the state has already begun examining the transaction and will conduct a thorough review.
“As the epicenter of the entertainment industry, California has a special interest in protecting competition,” Bonta said in a post on X on Friday.
Paramount’s offer is expected to raise concerns over potential job reductions in California, an issue that also followed Netflix’s proposal. Notably, Paramount expects $6 billion in cost “synergies” from the deal, a term often linked to workforce cuts or the scaling back of divisions.
It may also involve reducing suppliers and seeking revised terms from contractors after the merger. Such steps could affect California’s economy.
With inputs from agencies
