Paramount Skydance has finalised its bid to acquire Warner Bros. Discovery, a day after Netflix withdrew from the high-profile takeover battle for the Hollywood studio.
According to Reuters, Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a USD 110 billion deal.
In a statement released by the companies on Friday, they said that the deal, with an equity value of USD 81 billion, is expected to close in the third quarter of 2026. The final details of the deal were confirmed by Warner Bros in a townhall held earlier in the day.
The merger would create a media powerhouse, combining major studios and networks such as CNN and CBS. The new combined entity will boast a film library of over 15,000 film, TV, and streaming titles, including globally popular franchises like Game of Thrones, Mission Impossible, Harry Potter, and the DC Universe.
For months, Netflix had been the favourite to close the deal. The streaming pioneer had launched a USD 27.75-per-share agreement for Warner Bros Discovery's studio and streaming assets. The deal, valued at USD 83 billion, was eventually upended by Paramount on Thursday with its latest USD 31-per-share offer.
Additionally, while Netflix had offered to buy only Warner Bros. Discovery's studio and streaming assets, Paramount was buying the whole company.
Warner Bros. executives gave Netflix four business days to come up with a better counteroffer, but the streaming giant refused. Warner Bros. received the contracts from Paramount on Saturday, and within the following two days of non-stop negotiation, it concluded that Paramount's offer was superior, Reuters reported.
Warner Bros. shareholders are expected to vote on the proposed merger in early spring of 2026, the companies said. The new company has pledged to maintain both studios and produce a minimum of 30 theatrical films annually.
However, cinema operators and industry insiders have raised concerns that combining large Hollywood studios could cost jobs. “The loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked,” the Writers Guild of America said in a statement.
