Warner Bros. Discovery will be acquired by Paramount Skydance, ending a brief bidding war with Netflix. Netflix declined to match Paramount’s final offer of $31 per share, stating the price was “no longer financially attractive.” Warner Bros. Discovery will pay a $2.8 billion termination fee to Netflix for ending the existing agreement.
The acquisition consolidates two major media conglomerates, creating a portfolio that includes HBO, CNN, and Paramount Pictures. The deal values Warner Bros. Discovery at approximately $111 billion and assumes roughly $33 billion of its debt. Paramount secured a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management to finance the purchase.
Netflix had previously offered $82.7 billion to acquire Warner Bros. Discovery’s studios and streaming assets. Warner Bros. Discovery informed Netflix that Paramount’s $31 per share bid constituted a “superior proposal,” triggering a four-day window for Netflix to counter. Netflix co-CEOs Ted Sarandos and Greg Peters stated, “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.”
The transaction includes all Warner Bros. Discovery assets, specifically its studios, HBO, streaming services, games divisions, and linear networks such as CNN, TBS, TNT, and HGTV. Paramount is controlled by David Ellison, whose father, Larry Ellison, is providing additional equity for the deal. Larry Ellison is a major donor and supporter of President Trump.
Following the announcement, Netflix shares rose as much as 10% in after-hours trading. Paramount shares gained 4.5%. Larry Ellison has a net worth of $201 billion, according to Bloomberg. Paramount’s market capitalization is approximately $12 billion.
