Merger Sealed: Paramount Acquires Warner Bros. Discovery

(eap) Paramount Skydance Corporation (Paramount) and Warner Bros. Discovery (WBD) have announced that they have entered into a definitive merger agreement under which Paramount will acquire WBD after the streaming provider Netflix did not increase its offer in the ongoing bidding process. The merger is intended to unlock new potential for cross-platform storytelling – across film and television studios as well as streaming and linear distribution platforms. The aim is to strengthen the combined portfolio and provide consumers with an expanded content offering.

Under the terms of the agreement, Paramount will acquire 100 percent of WBD for USD 31 per share in cash, valuing WBD at an equity value of USD 81 billion (approx. EUR 69 billion) and an enterprise value of USD 110 billion (around EUR 94 billion). The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and approval by WBD shareholders. The shareholder vote is scheduled for spring 2026. If the transaction has not closed by September 30, 2026, WBD shareholders will receive a so-called “ticking fee” of USD 0.25 per share for each quarter (measured daily) until the transaction is completed.

David Ellison, Chairman and CEO of Paramount, stated: “From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. 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, partners and shareholders – and we couldn’t be more excited for what’s ahead.”

David Zaslav, President and CEO of Warner Bros. Discovery, emphasized: “I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction.”

For the international leisure and attractions industry, the transaction is likely to be of relevance due to the extensive IP rights involved. The future combined portfolio will include franchises such as “Harry Potter”, “Mission: Impossible,” the “DC Universe,” “Teenage Mutant Ninja Turtles”, “Transformers”, “Star Trek”, and “SpongeBob SquarePants”, which frequently serve as thematic foundations for attractions, branded environments and entertainment formats. ■