Warner Bros. Discovery agrees to $110 billion Paramount merger

Warner Bros. Discovery (WBD) has officially agreed to a merger with Paramount Skydance in a deal valued at $110 billion. This agreement marks the conclusion of a competitive bidding process, during which Paramount made a series of offers to acquire WBD after Netflix opted not to match Paramount's final bid. Initially, WBD had signed a deal worth $83 billion to merge parts of its operations with Netflix, but Paramount's persistence led to a determination that its offer was superior. Following this decision, Netflix walked away from its agreement with WBD, resulting in a $2.8 billion termination fee that Paramount paid to Netflix (France24, Engadget). The merger will integrate WBD's studio, linear channels, streaming service, and gaming segment into Paramount. David Ellison, CEO of Paramount Skydance, expressed intentions to merge the streaming services HBO Max and Paramount Plus, which would create a combined subscriber base of over 200 million direct-to-consumer subscribers. However, Ellison emphasized that the HBO brand would continue to operate independently within the new structure (The Verge, Hollywood Reporter). As part of the merger, Paramount has made commitments to address regulatory concerns, including a pledge to produce 30 theatrical films annually and to maintain a minimum 45-day window for theatrical releases before they are available for video on demand. The deal is expected to close by the third quarter of 2026 (Engadget).