Warner Bros. Discovery on Friday formally signed an agreement to be acquired by Paramount Skydance, the two companies announced, setting the stage for one of the most consequential media mergers in recent history.<\/p>\n
The deal was inked just a day after Netflix abruptly announced it was pulling out of the bidding war<\/a> for Warner Bros. Discovery\u2019s studio and streaming assets, effectively closing the curtains on a corporate battle that had riveted Hollywood.<\/p>\n Paramount Skydance\u2019s offer of $31 a share values WBD at roughly $77 billion and includes the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels, including CNN. Netflix\u2019s proposal did not include the cable assets.<\/p>\n The takeover bid, factoring in WBD\u2019s debt load, comes to a total of more than $110 billion.<\/p>\n The transaction was unanimously approved by the boards of directors of both media giants, the companies said in a joint news release. The deal is \u201csubject to customary closing conditions, including regulatory clearances and approval by WBD shareholders, with a vote expected in the early spring of 2026.\u201d<\/p>\n If the transaction has not closed by Sept. 30, WBD shareholders will receive a $0.25 a share \u201cticking fee\u201d for each quarter.<\/p>\n The deal still needs to be approved by regulators, and Democrats in Congress have vowed to scrutinize the transaction<\/a>. Paramount Skydance\u2019s proposal for WBD includes a $7 billion reverse termination fee if regulators block the deal.<\/p>\n If approved, the merger would unite two storied Hollywood film studios and encompass a sprawling library of intellectual property that ranges from \u201cThe Godfather\u201d and SpongeBob Squarepants (Paramount) to \u201cCasablanca\u201d and Batman (WBD).<\/p>\n Paramount Skydance is led by David Ellison, the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump. The younger Ellison\u2019s Skydance Media acquired Paramount Global last year in an $8 billion deal.<\/p>\n \u201cBy bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders \u2014 and we couldn\u2019t be more excited for what\u2019s ahead,\u201d Ellison said in a statement.<\/p>\n Ellison, 43, pursued the WBD assets even after the company signed a $72 billion deal with Netflix. WBD rejected several offers from Paramount Skydance before Ellison on Thursday boosted the purchase price from $30 to $31 a share.<\/p>\n