Paramount–Warner Bros. Deal Creates New Media Giant in $110B Merger

After a fierce bidding war, Paramount Skydance defeated Netflix and announced on February 27 that it will purchase Warner Bros. Discovery. The merged firm will be valued at $110 billion. This deal finally puts an end to the five-month bidding war and establishes a new entertainment giant.

This merger will be subject to intense scrutiny for its effects on the media industry and its ties to the Trump administration. A number of highly valuable Hollywood franchises, including SpongeBob SquarePants, Harry Potter, Game of Thrones, the DC Universe, CNN, HBO, and Nickelodeon will be a part of the combined company.

Specifics of the Paramount-Warner Deal

All current Warner Bros. Discovery shares will be purchased by Paramount for $31.00 per share in cash, as per the agreement's conditions. Therefore, this amounts to $81 billion in equity and $110 billion when you include the debt that Paramount would accumulate. The boards of directors of both firms have given their unanimous approval to the transaction, and the companies have stated that they expect it to close in the third quarter of 2026.

There is a defined goal behind the acquisition of Warner Bros. Discovery, according to Paramount Chairman and CEO David Ellison. So, it hopes to develop a media and entertainment powerhouse of the future while paying tribute to two legendary brands. After a protracted standoff, the arrangement finally resolves the dispute that began when Netflix declined to match Paramount's most recent offer. Now the focus shifts to the Ellison family, who will have a plethora of media assets all around the world under their control.

Tag of War Between Netflix and Paramount

Paramount CEO David Ellison's father, Oracle billionaire Larry Ellison, provided substantial funding for his son's acquisition of the studio and his later attempt to acquire Warner Bros. Discovery. President Trump has also had Larry Ellison as an ally for quite some time. Paramount succeeded where Netflix failed in its efforts to win over the White House.

Regulators may look closely at the Paramount offer because it incorporates capital from three sovereign wealth funds in the Middle East: Saudi Arabia, Qatar, and Abu Dhabi. In the event that the transaction is unable to conclude due to regulatory reasons, Paramount has additionally proposed a regulatory termination fee of $7 billion. The $2.8 billion breakup fee that Warner Bros owes Netflix when it walked away from their partnership has also been covered.