Paramount Skydance has agreed to acquire Warner Bros. Discovery for about $111 billion, concluding a months-long bidding contest with Netflix. The agreement gives Paramount CEO David Ellison control of a vast entertainment portfolio that includes major film studios, the streaming service HBO, and television networks such as CNN and CBS. Netflix withdrew its $82.7 billion offer after Warner Bros.’ board determined Paramount’s revised proposal offered greater value. The contest required several bids, extensive negotiations, and financial backing from Larry Ellison, who supported the financing through a family trust.
Warner Bros. CEO David Zaslav said the agreement could deliver strong returns to investors. “Once our board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders,” he said, adding that the companies look forward to working together to create new entertainment. Netflix confirmed it stepped away because matching the final price would no longer be financially feasible. The company stated, “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.” Paramount has secured about $57.5 billion in debt financing for the transaction and is subject to regulatory review before the deal can close.
