LOS ANGELES, Feb. 27, 2026 – Paramount Skydance has agreed to acquire Warner Bros. Discovery in a $110 billion deal, ending a months-long bidding war after Netflix declined to top the latest offer, Reuters reported.
The agreement values WBD at about $31 per share and now heads to regulators and WBD shareholders after both boards approved the merger, according to NBC News.
What the deal includes
Paramount says the combination would unite two major studios and a film library of more than 15,000 titles, while targeting roughly $6 billion in cost savings from technology and corporate integration, Reuters reported.
Paramount also pledged to keep both studios active and maintain theatrical windows as it blends streaming platforms and franchise portfolios, details the company highlighted in statements cited by Variety.
Why Netflix stepped back
Netflix declined to match Paramount’s higher bid, saying the price was no longer financially attractive, and WBD’s board deemed Paramount’s proposal superior, according to CNBC.
Paramount agreed to pay the $2.8 billion termination fee owed to Netflix, and the new deal includes a $7 billion reverse termination fee if regulators block the merger, The Hollywood Reporter reported.
Regulatory outlook
Paramount is targeting a third-quarter 2026 closing, but state and federal reviews loom; California’s attorney general has already opened a review, and the companies still need approvals in multiple jurisdictions, according to Reuters and Variety.
The consolidation has also drawn concern from theater operators and industry groups about job losses and a potentially narrower release slate, a risk flagged in coverage of the deal’s broader impact, Reuters noted.
Investors greeted the resolution of the bidding war positively, with market moves reflecting renewed confidence in Paramount’s strategy and Netflix’s renewed focus on its core business, according to Reuters.
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