Paramount to buy Warner Bros. Discovery for $31/share

Paramount to buy Warner Bros. Discovery for $31/share

Paramount to Acquire Warner Bros. Discovery in $31-Share Cash Deal

Paramount Skydance Corporation (NASDAQ: PSKY) has agreed to acquire Warner Bros. Discovery (NASDAQ: WBD) in a $31-per-share all-cash transaction, valuing the media giant at $81 billion in equity and $110 billion in enterprise value. The deal, announced on February 27, 2026, follows a prolonged bidding war with Netflix (NASDAQ: NFLX), which had previously agreed to purchase WBD's studio and streaming assets for $27.75 per share ($82.7 billion total) in December 2025 according to a press release.

Warner Bros. Discovery's board determined Paramount's revised offer—a $1-per-share increase from its prior bid—constitutes a "Company Superior Proposal" under the terms of its merger agreement with Netflix. Netflix has since declined to match the higher price, citing financial unattractiveness. The Paramount deal includes a $7 billion regulatory termination fee if the transaction fails regulatory approval, a $0.25-per-share "ticking fee" for delays beyond September 30, 2026, and a $2.8 billion payment to terminate the Netflix agreement as detailed in the announcement.

Paramount's funding structure combines $47 billion in equity—fully backed by the Ellison family and RedBird Capital Partners—with $54 billion in debt from Bank of America, Citigroup, and Apollo. The transaction is expected to close in Q3 2026, pending regulatory and shareholder approvals, with a WBD shareholder vote scheduled for March 20 as reported.

The merger would unite Paramount's studios and streaming platforms (Paramount+, Pluto TV) with WBD's assets, including HBO Max, DC Comics, and CNN. Combined, the entity would control over 15,000 film titles and a broad sports rights portfolio, including the NFL and Olympics. Paramount emphasized strategic benefits such as expanded content production, enhanced streaming competitiveness, and operational synergies projected to exceed $6 billion.

Regulatory scrutiny remains a key risk, as both deals face antitrust concerns. Critics have highlighted potential market concentration in streaming and news. WBD CEO David Zaslav stated the board "continues to recommend" the Netflix deal but acknowledged Paramount's proposal offers "superior value" according to CNBC.

The transaction underscores intensifying consolidation in the media sector, as companies seek scale to compete in an evolving entertainment landscape.