Paramount Global has agreed to acquire Warner Bros. Discovery in a huge $110 billion enterprise value deal, marking one of the largest media mergers in history. As per reports, the transaction includes around $81 billion in equity paid directly to shareholders and around $30-33 billion in assumed debt. In addition, discovery shareholders will get $31 per share in cash. However, the deal is expected to close in the third quarter of 2026, subject to shareholder and regulatory approvals, and carries a $7 billion breakup fee if regulators block the merger.
Netflix Steps Back from the Bidding War
A day after Netflix withdrew its name from the high-stakes bidding war for Hollywood studio Warner bros discovery, has finalised its bid to get the studio and its assets. Moreover, Netflix offered about $82.7 billion, including the assumed debt and shares at around $27.75 each. At the end, Netflix declined the bid, clearing the way for Paramount’s higher $110 billion enterprise value agreement.
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What Paramount Now Owns
With this deal, Paramount gained HBO, CNN, Warner Bros, Studios, Discovery’s global TV networks, and DC Entertainment. The combined company will take over 15,000 film, streaming titles, and TV, significantly expanding its global entertainment and news portfolio. Some of the popular franchises include Mission: Impossible, Game of Thrones, and Harry Potter.
Financial Terms, Fees, and Timeline
The transaction is valued at $110 billion in enterprise value, including about $81 billion in equity and $30-33 billion in assumed debt. Moreover, shareholders will get $31 per share in cash. The deal also includes a $7 billion target closure in quarter three 2026.
Impact on the Global Streaming Market
The merger enhances Paramount’s position against several rivals, such as Netflix, by combining Paramount+ and HBO’s streaming services. Moreover, with expanded franchise, global new assets, and a larger content library, the new entity can compete more for new subscribers, international rights, and advertising revenue.