Warner Bros. Discovery to merge with Paramount Skydance Media in a $77B deal, valued at over $110B including debt. Regulatory approvals and shareholder vot
Merger Agreement Between Warner Bros. Discovery and Paramount Skydance Announced
On Friday, Warner Bros. Discovery (WBD) announced it had reached a definitive agreement to be acquired by Paramount Skydance Media LLC, marking a significant shift in the media landscape. This development comes after Netflix unexpectedly withdrew its bid for WBD’s studio and streaming assets.
Deal Details and Financial Implications
The deal, valued at approximately $77 billion, includes WBD's film studio, HBO Max streaming platform, and cable channels such as CNN. Paramount Skydance’s proposal also accounts for WBD’s debt load, bringing the total transaction value to more than $110 billion.
Regulatory Scrutiny and Approval Process
The merger is subject to regulatory clearances and shareholder approval, with a vote scheduled in early spring 2026. If not completed by September 30, WBD shareholders will receive a "ticking fee" of $0.25 per share for each quarter.
Key Players and Strategic Moves
David Ellison, son of Silicon Valley billionaire Larry Ellison, leads Paramount Skydance Media. His company recently acquired Paramount Global in an $8 billion deal. In pursuit of WBD assets, Ellison increased the purchase price from $30 to $31 a share after WBD rejected earlier offers.
Implications and Future Plans
The merger would unite two prestigious Hollywood film studios, combining their extensive library of intellectual properties, including classics like "The Godfather" and "Casablanca." Paramount Skydance CEO David Ellison expressed excitement about the deal’s potential to create greater value for audiences, partners, and shareholders. The specifics of how Paramount Skydance plans to integrate its properties with WBD remain unclear.
Industry Reaction
WBD's president and CEO, David Zaslav, stated that the deal maximizes the value of iconic assets while providing certainty for investors. Netflix, which withdrew from the bidding war, paid a $2.8 billion termination fee to Paramount Skydance.
Political Context
Democrats in Congress have vowed to scrutinize the transaction closely, reflecting broader concerns about media consolidation. Meanwhile, former President Donald Trump has not publicly commented on the deal but warned Netflix it would face consequences if it did not fire board member Susan Rice. Ellison and Netflix's co-CEOs attended recent events in Washington, D.C., signaling ongoing involvement.
Outlook for Hollywood
The merger sets the stage for significant changes in Hollywood’s media landscape, with employees in WBD’s Los Angeles headquarters preparing to adapt to an "Ellison era." The success of this transaction could reshape the future of streaming and traditional media.
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