Paramount Claim There's No Plan To Sell Cable Assets

The Paramount Skydance merger with Warner Bros. Discovery, announced after a heated bidding war, will create a major media powerhouse valued at approximately $110 billion (with Paramount paying $31 per share for Warner Bros. Discovery). The combined entity will carry about $79 billion in net debt, Paramount disclosed on Monday, with no plans to divest or spin off cable networks.

Reuters reports Paramount CEO David Ellison revealed the details in an analyst call following the deal's signing on Friday. The merger unites the companies' streaming services into one platform, serving over 200 million direct-to-consumer subscribers across more than 100 regions. This scale is intended to better compete against dominant player Netflix.

The deal combines extensive cable and broadcast assets, including Paramount's CBS, MTV, Comedy Central, and BET with Warner's CNN, HBO, TNT, and Food Network. It also merges one of Hollywood's deepest content libraries, featuring franchises like Game of Thrones, Mission: Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants.

The merged company expects to produce at least 30 theatrical films per year while preserving both Warner Bros. and Paramount studios as distinct entities.

The transaction ended a months-long contest where Netflix initially agreed in December to acquire Warner Bros. assets (excluding cable networks) for $27.75 per share, or about $82.7 billion. Paramount's superior bid prompted Warner's board to favor it, leading Netflix to decline matching and step back. Paramount paid Warner's $2.8 billion termination fee to Netflix. The deal is expected to close in the third quarter of 2026, pending regulatory approvals and shareholder vote.

Competition concerns have emerged, with California Attorney General Rob Bonta announcing a vigorous state investigation. Cinema operators warn of potential job losses and fewer theatrical releases. However, the merger is anticipated to gain European Union antitrust approval with only minor divestments likely, per reports. Some analysts note Paramount's ties—via David Ellison and his father, billionaire Larry Ellison—to the Trump administration could aid favorable regulatory outcomes.