Supreme. | Photo credit: AP
Paramount Skydance announced Friday (Feb. 27, 2026) that it will acquire Warner Bros. Discovery in a deal that values the combined company at $110 billion, after beating Netflix in a tough bidding war.
The deal ends a five-month bidding saga and creates an entertainment giant whose impact on a struggling media landscape (and its connections to Donald Trump’s White House) will be closely scrutinized.
The merged entity will include CNN, HBO and Nickelodeon, as well as some of Hollywood’s most valuable franchises, including Harry Potter, Game of Thrones, the DC Universe, Mission Impossible and SpongeBob SquarePants.
Under the terms of the agreement, Paramount will pay $31.00 per share in cash for all outstanding shares of Warner Bros. Discovery, implying an equity value of $81 billion, and $110 billion if the debt that Paramount will assume is included.
The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2026, the companies said.
“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,” said Paramount Chairman and CEO David Ellison.
The deal closes a saga that ended Thursday when Netflix pulled out, unwilling to match Paramount’s latest offer. Questions now revolve around the Ellison family, which will control a constellation of media properties around the world.
Oracle billionaire Larry Ellison is the father of Paramount CEO David Ellison and largely financed his son’s acquisition of Paramount and its subsequent bid for Warner Bros. Discovery.
Larry Ellison is also a longtime ally of President Trump. Both Paramount and Netflix have tried to curry favor with the White House, and Paramount won.
Paramount’s offer includes financing from three Middle Eastern sovereign wealth funds (Saudi Arabia, Qatar and Abu Dhabi) that could attract regulatory scrutiny.
Paramount has also offered a $7 billion regulatory termination fee in case the deal doesn’t close for regulatory reasons, and has covered the $2.8 billion breakup fee that Warner Bros. owed Netflix when it abandoned its deal.
Published – February 28, 2026 12:56 am IST
