Paramount Acquires Warner Bros. Discovery After Tight Bid Against Netflix
Paramount launched a cash tender offer for Warner Bros. Discovery (WBD). Photo: AFP
TL;DR
- Paramount has agreed to purchase Warner Bros. Discovery for $110 billion, surpassing Netflix's bid.
- The merged entity will combine studios and streaming services, including HBO Max and Paramount+.
- Paramount will pay $31 per share in cash, valuing the equity at $81 billion, with the total deal size reaching $110 billion including debt.
- The acquisition was unanimously approved by the boards of directors of both companies, with an expected closing in Q3 2026.
- Netflix withdrew its bid, allowing it to refocus on its core business.
- The acquisition is largely financed by Oracle's Larry Ellison and is subject to regulatory approvals.
- Paramount has offered a $7 billion regulatory termination fee and assumed Warner Bros. Discovery's $2.8 billion breakup fee to Netflix.