Paramount buys Warner Bros Discovery for 110.9 billion dollars and waits on the regulators

Paramount Skydance is taking over Warner Bros Discovery for 110.9 billion dollars. The price is 31 dollars per share in cash. Shareholders approved in April, and clearance from the competition authorities is still outstanding.

That ends a bidding process that began in November 2025 and changed direction several times. Warner Bros Discovery had originally planned a split and then examined strategic alternatives. Offers came from Paramount Skydance, Netflix, Comcast and Starz.

The short version

• Paramount Skydance takes over Warner Bros Discovery for 110.9 billion dollars or 31 dollars per share in cash.
• Netflix had reached an agreement worth around 82.7 billion dollars including debt on 5 December 2025 and stepped away on 26 February.
• A fee of 25 cents per share was agreed for each quarter without a closing, beginning on 30 September 2026.

Netflix already had the deal

On 5 December 2025 an agreement with Netflix was announced. It provided for Netflix to take over the studio and the streaming business, while the classic television channels would be split off as a separate company.

The value stood at around 82.7 billion dollars including debt. Shareholders were to receive 27.75 dollars per share.

Paramount Skydance by contrast pursued the takeover of the entire company including the pay channels and put forward an all cash offer. In January it filed suit to obtain more information about the Netflix agreement and prepared a fight over voting rights in Delaware.

In February Warner Bros Discovery obtained a contractual release from Netflix and resumed talks with Paramount. On 26 February the board judged the raised offer of 31 dollars per share to be superior.

Netflix chose not to top it and withdrew. The two chief executives said that the transaction they had negotiated would have created value for shareholders and had a clear path to regulatory approval.

A premium for every quarter of delay

What stands out about the offer are the additional terms with which Paramount secured approval.

A fee of 25 cents per share was agreed for each quarter in which the deal does not close, beginning on 30 September 2026. That compensates shareholders for delays in the regulatory review.

In addition Paramount takes on the break fee of 2.8 billion dollars that falls due for unwinding the Netflix agreement.

Larry Ellison has secured the financing of the offer. Jared Kushner had withdrawn his investment vehicle from the financing in December.

What Warner Bros Discovery brings

The group owns some of the best known names in entertainment, among them the film studio Warner Bros and the channel HBO. Its library covers films and television programmes from several decades.

On top of that come production facilities. The main lot in Burbank in California covers more than 110 hectares with 31 sound stages and eleven backlots. Another large site outside London occupies around 200 hectares.

Criticism from the industry

Reactions in the entertainment industry were largely negative from the start. At the centre stood concern about the future of cinemas and about further concentration in the streaming market.

That criticism was first aimed at the Netflix agreement, because a streaming company would have taken over the theatrical exploitation of a large studio. With the Paramount solution the objection shifts to market concentration, because two large studios are being brought together.

In case the transaction fails on regulatory questions, a further break fee was agreed. The timing of the closing is open. The agreed delay fee from 30 September suggests that the parties themselves expect a longer process.

Frequently asked questions

Why did Paramount win instead of Netflix

Paramount pursued the takeover of the entire company including the pay channels and put forward an all cash offer. On 26 February the board judged the raised offer of 31 dollars per share to be superior. Netflix chose not to top it.

What does the delay fee mean

A fee of 25 cents per share was agreed for each quarter in which the deal does not close, beginning on 30 September 2026. That compensates shareholders for delays in the regulatory review. The arrangement suggests that the parties themselves expect a longer process.

What belongs to Warner Bros Discovery

The group owns the film studio Warner Bros and the channel HBO as well as films and television programmes from several decades. On top of that come production facilities, among them the main lot in Burbank with more than 110 hectares, 31 sound stages and eleven backlots, and a site outside London of around 200 hectares.

This analysis is for information only and is not investment advice.