Warner Bros. Discovery has agreed to a takeover by Paramount Skydance in a deal valued at $110 billion, bringing an end to a fierce bidding contest that had also involved Netflix.
The agreement was confirmed in a joint statement issued on Friday, a day after Netflix formally withdrew from negotiations. According to Reuters, the transaction carries an equity value of $81 billion and is expected to be completed in the third quarter of 2026, subject to shareholder and regulatory approval. Warner Bros executives reportedly outlined the final terms during a staff town hall earlier in the day.
The merger will bring together some of the world’s most recognisable entertainment brands, uniting major studios and broadcast networks including CNN and CBS under a single corporate structure. Industry analysts say the move is designed to strengthen the companies’ position in a rapidly evolving market, as streaming platforms continue to draw audiences away from traditional linear television.
The combined group will control a catalogue of more than 15,000 film, television and streaming titles. Among its flagship properties are globally successful franchises such as ‘Game of Thrones’, ‘Mission: Impossible’, ‘Harry Potter’ and the ‘DC Universe’.
For several months, Netflix had been widely viewed as the frontrunner in the takeover race, having offered $27.75 per share for Warner Bros’ studio and streaming operations in a deal worth $83 billion. However, Paramount tabled a higher offer of 31 dollars per share and, crucially, proposed acquiring the entire company rather than selected assets.
Warner Bros reportedly gave Netflix four business days to submit a revised proposal, but the streaming company declined to improve its bid. Contracts from Paramount were received shortly afterwards, and following two days of intensive negotiations, Warner Bros concluded that the Paramount offer represented the stronger overall package.
Shareholders are expected to vote on the proposed merger in early spring 2026. The companies have pledged to retain both studios and commit to producing at least 30 films for theatrical release each year.
Despite the strategic ambitions behind the deal, the proposed consolidation has raised concerns within the industry. Cinema operators and labour groups have warned that further concentration among major Hollywood studios could result in job losses and reduced competition.
In a statement, the Writers Guild of America said that diminishing competition would harm writers, audiences and the broader entertainment sector and urged regulators to block the merger.
