A signed agreement announced internally Friday would combine two Hollywood giants, pending regulatory review and final approvals.
By yourNEWS Media Newsroom
Warner Bros Discovery has agreed to be acquired by Paramount Skydance in a $110 billion transaction that includes approximately $29 billion in debt, according to remarks made during a global company townhall and reviewed by Reuters.
The agreement, signed Friday morning, concludes a protracted bidding contest that also involved Netflix. Bruce Campbell, Warner Bros’ chief revenue and strategy officer, addressed employees during the internal meeting.
“Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands,” Campbell said.
Paramount and Warner Bros did not immediately respond to media requests for comment.
The acquisition represents one of the largest consolidation moves in modern Hollywood history. Under the deal, Paramount Skydance will gain control of Warner Bros Discovery’s assets, including its extensive intellectual property portfolio. Among the franchises included are “Fantastic Beasts” and “The Matrix.”
The transaction follows Netflix’s decision not to match Paramount’s revised $31-per-share offer. Warner Bros had previously agreed to a $27.75-per-share agreement with Netflix for its assets, but Paramount’s higher bid was deemed superior by Warner’s board.
Paramount had been pursuing Warner Bros since late last year, initially launching what was described as a hostile effort to gain control of the studio. The company, led by David Ellison, son of billionaire Larry Ellison, increased its offer multiple times in an effort to secure board support.
In its final revised bid, Paramount also raised the termination fee to $7 billion from $5.8 billion should the deal fail to receive regulatory approval.
The combined entity would create one of the largest film studios globally and could significantly reshape the streaming landscape. Industry analysts note that a potential integration of HBO Max with Paramount’s streaming assets could strengthen the company’s ability to compete for market share against streaming leader Netflix.
The merger has already drawn attention from lawmakers and regulators. Observers expect scrutiny from federal antitrust authorities, several U.S. states including California, and foreign regulators. Members of Congress from both parties have raised concerns that consolidation could reduce consumer choice and lead to higher prices.
Cinema operators have also expressed apprehension that the merger could result in workforce reductions and fewer theatrical releases as studios consolidate production strategies.
Despite the Ellison family’s ties to President Donald Trump, regulatory review is anticipated to be extensive given the scale of the transaction and the concentration of media assets involved.
If approved, the deal would mark one of the most consequential realignments in the entertainment industry in decades, reshaping film production, streaming competition and studio ownership across Hollywood.
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