Warner Bros. Discovery signs $110B merger deal with Paramount Skydance
What's the story
Warner Bros Discovery has signed a massive $110 billion deal with Paramount Skydance, according to an audio clip reviewed by Reuters. The merger is one of the biggest media consolidations in recent years and is expected to close in Q3 2026. The agreement was finalized after Netflix chose not to match Paramount's latest offer of $31 per share, thus withdrawing from the bidding war for Warner Bros. Discovery's studio and streaming assets.
Approval process
Deal approved by board of directors of both companies
The deal has been approved by the board of directors of both media giants, according to a joint statement from the companies. However, it is still "subject to customary closing conditions, including regulatory clearances and approval by WBD shareholders." A vote on this matter is expected in early spring 2026. Bruce Campbell, Warner Bros' Chief Revenue and Strategy Officer, said Netflix had the legal right to match PSKY's offer but chose not to do so.
Strategic vision
Potential merger of streaming services
Paramount Skydance is led by David Ellison, son of Silicon Valley billionaire Larry Ellison. Larry is a close ally of President Donald Trump. David said in a statement, "By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences." This merger could potentially create one of the world's largest film studios and strengthen Paramount's streaming efforts with a possible HBO Max-Paramount+ combination.