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Warner Bros Discovery has agreed to be acquired by Paramount Skydance following a competitive takeover battle involving Netflix. The agreement ends months of negotiations and positions Paramount to absorb one of the largest media libraries and studio portfolios in the entertainment industry.
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A contest that drew attention across Hollywood, Wall Street, and the streaming sector concluded after Netflix declined to increase its $82.7 billion all cash proposal. Paramount Skydance raised its bid to $31 per share, a price Warner Bros Discovery determined to be the stronger financial option.
Netflix leadership confirmed the decision to step back rather than match the revised terms. Ted Sarandos and Greg Peters said:
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Paramount, acquired last year by Skydance Media led by David Ellison, will now take control of a vast collection of entertainment assets. The transaction includes film and television studios, HBO, streaming platforms, gaming operations, and cable networks such as CNN, TBS, TNT, Discovery, and HGTV. Scale of the acquisition strengthens Paramount position in the global streaming and content licensing race, where competition for subscriber retention and advertising revenue continues to intensify.
Financial backing for the purchase relies heavily on Larry Ellison, Oracle executive chair and father of David Ellison. He has committed additional equity support to complete the acquisition. Financing also includes a $57.5 billion debt package arranged by Bank of America Merrill Lynch, Citi, and Apollo Global Management.
Paramount has agreed to absorb about $33 billion in Warner Bros Discovery debt, adding leverage but also granting access to valuable intellectual property, franchises, and distribution channels. Paramount market capitalization currently sits near $12 billion, highlighting the scale difference between buyer and target and underscoring reliance on external financing.
Original negotiations leaned in favor of Netflix, which announced plans in December to acquire studio and streaming assets for nearly $83 billion. Paramount responded with several aggressive counteroffers, eventually proposing more than $108 billion for the full company, including traditional television holdings often viewed as less attractive in the streaming era.
Warner Bros Discovery ultimately shifted support toward Paramount revised structure, citing improved valuation and broader asset integration. Agreement terms require payment of the $2.8 billion breakup fee to Netflix, a cost Paramount has agreed to cover as part of the final arrangement.
David Ellison has indicated that operational restructuring will follow, including potential workforce reductions as overlapping divisions are consolidated. Control of major news and entertainment outlets already held by Paramount has drawn political attention in the United States, especially given financial ties between Larry Ellison and President Donald Trump.
Integration of Warner Bros Discovery content library with Paramount existing film, television, and streaming businesses could reshape licensing strategies, sports media negotiations, and global distribution partnerships. Industry analysts expect consolidation to influence advertising markets, subscriber pricing models, and competition with platforms such as Netflix, Amazon, and Disney.