Paramount bought Warner Bros. for $110 billion

According to Variety, Paramount Skydance Corp. has paid $2.8 billion to terminate the deal between Warner Bros. Discovery. The move lifted a legal restriction that had prevented Paramount from closing its own deal.

The agency said the $110 billion acquisition of Warner Bros. Discovery had already been completed, with an official announcement expected the same day.

Details of Netflix deal termination

Netflix previously reported that Warner Bros. Discovery had sent a formal notice of termination of the previous merger agreement in order to enter into a new agreement with PSKY (Paramount Skydance).

Simultaneously with the termination of the agreement, PSKY, acting on behalf of WBD, paid Netflix compensation in the amount of $2.8 billion. The fact of the transfer of funds effectively confirmed the completion of the new agreement.

Against the background of the news, Paramount shares rose by 24%, Netflix shares by 13%. Investors reacted positively to Netflix’s refusal to participate in the competition for the asset. According to Reuters, the company expects to receive approval from the antitrust authorities of the European Union without serious difficulties. Possible requirements for the sale of assets are expected to be minimal.

Terms of the deal and closing dates

Later, the Deadline reported on the official announcement of the deal and cited a joint statement from the parties.

According to the document, Paramount will acquire Warner Bros. Discovery for $31 per share in cash. The deal has been unanimously approved by the boards of directors of both companies. The transaction is scheduled to close in the third quarter of 2026, subject to regulatory approvals and approval by WBD shareholders. A vote is expected in early spring 2026.

If the process is not completed by September 30, 2026, WBD shareholders will receive compensation of $0.25 per share for each quarter of delay (calculated daily) until the final closing.

Content and Key Franchises

The combined entity says it will expand its intellectual property portfolio and strengthen its positions in film, television and streaming. The joint catalog will include franchises including “Harry Potter,” “Mission: Impossible,” “Top Gun,” DC Universe projects, “SpongeBob SquarePants,” and the series Game of Thrones.

The companies say the combination of assets will strengthen their positions in the global streaming and linear television market by consolidating studio and platform resources.