PSKY, WBD Sign Merger Deal

Paramount Skydance has signed a definitive agreement to acquire Warner Bros. Discovery (WBD) in a deal valued at over $110 billion, including debt, creating one of the largest media mergers in recent history.

The all-cash transaction values WBD at $31 per share (roughly $77-81 billion in equity value), encompassing the Warner Bros. film studio, HBO Max streaming platform, CNN, and other cable networks. The boards of both companies unanimously approved the deal on February 27, 2026, with a shareholder vote expected in early spring 2026 and closing anticipated in the third quarter of 2026, subject to regulatory approvals.

The agreement ends a intense bidding war, as Netflix withdrew its prior offer just a day earlier after declining to match Paramount Skydance's superior bid. Paramount Skydance raised its offer from $30 to $31 per share on Thursday, February 26, and includes a $7 billion reverse termination fee if regulators block the deal. If closing is delayed past September 30, 2026, WBD shareholders receive a $0.25 per share ticking fee per quarter.

The combined entity would unite iconic Hollywood studios and vast IP libraries—from Paramount's "The Godfather" and SpongeBob SquarePants to Warner Bros.' "Casablanca" and Batman—along with complementary streaming services (Paramount+ and Max) and networks including CBS and CNN. Paramount Skydance, led by David Ellison (son of billionaire Larry Ellison), described the merger as creating greater value for audiences, partners, and shareholders through enhanced storytelling and talent opportunities.

The deal faces scrutiny from regulators and some Democrats in Congress, amid concerns over media consolidation.