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

Paramount is making an aggressive bet on scale, franchises, and theatrical filmmaking with its agreement to acquire Warner Bros. Discovery in a cash deal valued at approximately $110 billion. The transaction, priced at $31 per share, will create one of the most expansive media libraries and sports portfolios in the world if regulators and shareholders approve it.

The combined company will control more than 15,000 film titles and thousands of hours of television programming. Its franchises range from "Harry Potter," "The Lord of the Rings," and "Game of Thrones" to the DC Universe, "Mission: Impossible," "Transformers," "Star Trek," "Teenage Mutant Ninja Turtles," and "SpongeBob SquarePants." The scale extends beyond scripted entertainment. Together, the companies will hold rights to the NFL, the Olympics, UFC, PGA Tour, NHL, Big Ten and Big 12 football, NCAA college basketball, and the UEFA Champions League, providing year-round sports programming across broadcast, cable, and streaming platforms.

Paramount is also pledging a significant commitment to the theatrical business. The merged company will release at least 30 films per year, evenly split between the two studios, and each movie will receive a full global theatrical rollout with a minimum 45-day exclusive window in cinemas. Only after that period will films move to home entertainment and later to subscription streaming services. The promise is designed to reassure theater owners and filmmakers concerned about shortened windows in the streaming era.

The road to this agreement was far from straightforward. Warner Bros. Discovery had previously entered into a merger pact with Netflix. However, after determining that Paramount’s bid represented a “Superior Proposal,” WBD gave Netflix four days to match the offer. Netflix declined and exited the process, clearing the path for Paramount after months of pursuit led by CEO David Ellison.

The companies formally unveiled their agreement on Friday and will discuss details during a conference call and webcast on Monday morning. The merger is expected to close in the third quarter of 2026, pending regulatory approvals and a vote by Warner Bros. Discovery shareholders anticipated in early spring.

Financing the transaction requires a massive capital structure. Paramount has secured $47 billion in equity fully backed by the Ellison family and RedBird Capital Partners, with the possibility of additional strategic or financial investors joining before closing. Under the terms of the commitment, new shares of Class B Paramount stock will be issued at $16.02 per share.

Debt financing totals $54 billion, arranged through Bank of America, Citigroup, and Apollo. That includes $15 billion to backstop Warner Bros. Discovery’s existing bridge facility and $39 billion in incremental new debt, along with $3.5 billion in bridge financing supporting an existing revolving credit facility. While the funding package ensures the deal can proceed, analysts caution that the combined company will carry substantial leverage, which may limit financial flexibility in the near term.

Paramount projects more than $6 billion in cost synergies from the merger. Those savings are expected to come from integrating technology systems, consolidating streaming platforms, migrating to a single enterprise resource planning system, reducing overlapping corporate expenses, optimizing real estate, and streamlining operations. Industry observers anticipate significant job reductions as part of the integration process.

Beyond cost-cutting, Ellison has emphasized modernization. The company said it intends to streamline “the technological underpinning of every aspect of the combined company’s businesses,” signaling a push toward unified digital infrastructure and operational efficiency. Paramount also pointed to recent high-profile partnerships including deals with Trey Parker and Matt Stone, the UFC, the Duffer Brothers, and Activision as evidence of its focus on franchise-driven growth.

The merger also expands Paramount’s global and cable footprint. The new company will include a broad portfolio of cable networks, including CNN, and inherit Discovery’s international presence spanning more than 200 countries and territories through cable and free-to-air channels.

David Ellison: 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: 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.

If completed, the deal will dramatically reshape the competitive landscape, uniting two storied Hollywood players into a single global entertainment powerhouse built on franchises, sports rights, and expansive international reach.