Warner Bros. Finalizes $110 Billion Merger with Paramount Skydance
Warner Bros. Discovery has officially agreed to be acquired by Paramount Skydance in a massive $110 billion deal signed on Friday, February 27, 2026. The agreement marks the end of a high-profile bidding war after Netflix chose not to match a rival offer.
Inside the Bidding War
During a global company meeting, Warner Bros. Chief Revenue and Strategy Officer Bruce Campbell explained that Netflix had the legal right to match the Paramount Skydance (PSKY) offer. However, Netflix ultimately declined, leading to the signed agreement with PSKY.
The bidding process reached a turning point on Thursday, February 26, when Warner Bros. declared Paramount’s bid “superior.” Paramount offered $31 per share, significantly higher than Netflix’s previous agreement of $27.75 per share for the company’s studio and streaming assets.
Why Netflix Withdrew
Netflix executives stated they decided not to raise their offer because the deal was “no longer financially attractive” at the higher price point. Investors reacted positively to this discipline; Netflix shares rose 13% following the announcement. Meanwhile, Paramount shares jumped 24% as the deal was finalized.
A Long Road to the Merger
Warner Bros. originally put itself up for sale last year. In December 2025, the company had initially agreed to an $82 billion takeover bid from Netflix. However, Paramount later entered the race with a rival proposal. After an initial rejection, Paramount increased its offer by $1 per share earlier this week, ultimately winning over the Warner Bros. board.
Regulatory Outlook and Scrutiny
The merger is expected to receive approval from European Union antitrust regulators with only minor requirements to sell off certain assets. However, the deal faces a tougher review in the United States. California Attorney General Rob Bonta has launched a probe into the merger, promising a “vigorous” review of its impact on the industry.
Creating a New Hollywood Powerhouse
This $110 billion deal, which includes $29 billion in debt, represents one of the biggest shake-ups in Hollywood history. The merger will:
- Combine Massive Libraries: Paramount will gain control of iconic Warner Bros. franchises like “The Matrix” and “Fantastic Beasts.”
- Boost Streaming Power: By merging HBO Max and Paramount+, the new entity aims to capture significant market share and compete directly with Netflix.
- Form a Global Leader: The combined company will become one of the largest film and television studios in the world.
Also Read : OPEC+ Considers Major Oil Output Hike Following Iran Airstrikes
