Paramount Skydance to Acquire Warner Bros. Discovery in a $110 Billion Deal

Paramount Skydance Corporation (PSKY) entered a merger agreement on February 27, 2026, to acquire Warner Bros. Discovery, Inc. (WBD) in a deal valued at $110 billion.

Deal Structure:

Paramount will pay $31 per share in cash for all outstanding shares of Warner Bros. Discovery, representing a 10.05% premium from the stock’s last close.

If the deal has not closed by September 30, 2026, WBD shareholders will receive a $0.25 per share “ticking fee” for each quarter (measured daily) until closing.

Company Profile:

Warner Bros. Discovery is a media and entertainment company that produces and distributes television, film, streaming, and gaming content through its Studios, Networks, and Direct-to-Consumer segments. Its portfolio includes brands such as HBO, CNN, Discovery Channel, HGTV, TLC, Warner Bros. Pictures, with different IPs like DC, Harry Potter, and Game of Thrones.

Paramount Skydance is a media and entertainment company operating across film studios, television networks, and streaming services, with businesses in Filmed Entertainment, TV Media, and Direct-to-Consumer. Its portfolio includes brands such as Paramount Pictures, CBS, Nickelodeon, MTV, BET, and streaming platforms including Paramount+ and Pluto TV.

Deal Details and Timeline:

Paramount terminated its all-cash tender offer to acquire all outstanding shares of WBD, which it had started as a hostile bid against Netflix (NFLX). Warner Bros. terminated its merger with Netflix as it entered this merger with Paramount.

The deal is expected to close in Q3 2026.

Together, Paramount and WBD will combine their streaming platforms and intellectual property portfolios, which include franchises such as Game of Thrones, Mission: Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants.

The companies will deliver 15 theatrical feature films per year per studio. The deal will also combine Paramount+, HBO Max, and Pluto.

Each film will be released in theaters worldwide and stay there for at least 45 days before being available on paid video-on-demand. For the most successful films, the theatrical run may last 60 to 90 days or longer to reach a wider audience.

The deal is funded by $47 billion in equity, fully backed by the Ellison Family and RedBird Capital Partners. Under the equity commitments, new shares of Class B Paramount stock will be issued at $16.02 per share.

In addition, the transaction is supported by $54 billion in debt commitments from Bank of America, Citigroup, and Apollo Global Management. This includes $15 billion to backstop WBD’s existing bridge facility and $39 billion in new debt. The $54 billion total excludes $3.5 billion in separate bridge financing from these institutions supporting the company’s existing $3.5 billion revolving credit facility.

Current Paramount shareholders will be able to buy up to $3.25 billion of Class B stock through a rights offering at $16.02 per share, alongside the new equity investment. This offering is expected to take place near the closing date.

Warner Bros. Discovery was advised financially by Allen & Co, J.P. Morgan, and Evercore, while legal counsel was provided by Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton. Paramount Skydance received financial advice from Centerview Partners, RedBird Advisors, Bank of America Securities, Citigroup, Michael Klein, and LionTree Advisors, with legal advice provided by Cravath, Swaine & Moore and Latham & Watkins.

The deal sees Paramount Skydance paying 14.14 times EBITDA for Warner Bros.

Deal Metrics:

For a more detailed analysis of this merger, please visit the Deal Metrics page:

Deal Metrics for the acquisition of Warner Bros. Discovery, Inc. (WBD) by Paramount Skydance Corporation (PSKY)

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.

Disclaimer: Please conduct your own due diligence before buying or selling any securities mentioned in this article. The completeness or accuracy of the content or data provided in this article is not warranted.

Editor’s Note: Baranjot Kaur contributed to this article