Paramount and Warner Bros. Discovery announce $110 billion deal

Warner Bros Discovery has agreed to a deal with Paramount Skydance, the two companies confirmed Friday in a news release.

According to the release, under the terms of the agreement, Paramount plans to pay “$31.00 per share in cash for all outstanding shares of WBD.”

“The merger unlocks innovative and compelling storytelling opportunities across the combined company’s best-in-class film and television studios, streaming and linear platforms,” the release stated.

According to the release, the board of directors of both companies approved the deal unanimously.

The deal is expected to close in the third quarter of 2026, “subject to customary closing conditions, including regulatory clearances and approval by WBD shareholders, with a vote expected in the early spring of 2026.”

The announcement came after a monthslong bidding war in which Paramount emerged as the victor in the fight to acquire the storied Warner Bros. Netflix, who backed away from the deal Thursday, had hoped to win the movie studio and its vast film library.

“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” Netflix said in a statement. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Paramount wants it all: Movies, cable networks and news. Dominic Patten, senior editor at Deadline, said the bidding reflected an aggressive approach driven by Paramount’s leadership.

“The main thing I think to take away from this is the sheer force Ellison brought to this, which was very much that Silicon Valley attitude of just go fast and break things, get what you want and at whatever price you have to,” Patten said.

The proposed merger will require approval from the U.S. Department of Justice and is already under review in California. Attorney General Rob Bonta said the state is closely examining the deal.

“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny – the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” Bonta said.

Almost 10 years ago, Hollywood’s big six became the big five when Disney bought most of 20th Century Fox. Now the big five looks like it’s destined to become the big four, including Universal and Sony, and the business of Hollywood moviemaking is one again in a time of profound transition.

ABC News and The Associated Press contributed to this report.