Paramount Discovery and Warner Bros. Discovery (WBD) signed an agreement Friday that formalizes the former’s purchase of WBD in a transaction valued at $110 billion.
“Paramount Skydance Corporation (PSKY) and Warner Bros. Discovery (WBD) announced today that they have signed a definitive merger agreement under which Paramount will acquire WBD, forming a premier global media and entertainment company focused on expanding consumer choice and empowering creative talent around the world,” a joint statement said.
The terms of the agreement include a cash consideration of US$31 per share for all outstanding shares of WBD.
“The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and WBD shareholder approval,” the brief added.
The vote on this agreement is expected to take place in early spring 2026. If the deal does not close by September 30, “WBD shareholders will receive a fee of $0.25 per share for each quarter (measured daily) until closing,” he said.
Paramount Skydance beats Netflix in its purchase of Warner Bros. Discovery
The agreement further stipulates that each WBD film “will have a full theatrical release, with a minimum period of 45 days worldwide before being made available on VOD, with the intention of reaching 60 to 90 days or more to maximize the audience for our most successful releases.”
The merger terms become official one day after entertainment giant Netflix withdrew from the bidding to acquire WBD, following a new offer submitted this week by Paramount.
Paramount’s deal was in response to Netflix’s deal last December, as part of a preliminary alliance to acquire WBD’s studios and streaming business for $27.75 per share, valuing those assets at about $72 billion, with a total enterprise value of about $82.7 billion.
This transaction between the two companies “opens up attractive new storytelling opportunities in the combined company’s film and television studios, streaming platforms and premium linear platforms,” reported Agencia EFE.
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