Paramount to acquire Warner Bros in $110B deal after Netflix steps aside

Paramount Skydance has agreed to acquire Warner Bros Discovery in a $110 billion deal signed Friday morning, capping a high-profile bidding battle that drew in Netflix.

According to an internal townhall reviewed by Reuters, Warner Bros executives confirmed that Netflix had the legal right to match Paramount Skydance’s offer but ultimately declined. That decision cleared the way for a signed agreement with PSKY.

Paramount Skydance shares surged nearly 20% on the news, while Netflix climbed 13% as investors welcomed its decision to withdraw from the takeover race.

Paramount’s latest bid of $31 per share was deemed superior to Netflix’s $27.75 per share proposal for Warner’s studio and streaming assets. The revised offer included stronger deal protections, with Paramount raising its regulatory termination fee to $7 billion from $5.8 billion and agreeing to cover Warner’s $2.8 billion breakup fee owed to Netflix.

The transaction, which includes roughly $29 billion in debt, ranks among the largest media deals in recent years and will combine major film and streaming assets under one umbrella.

Paramount gains access to Warner’s intellectual property portfolio, including franchises such as Fantastic Beasts and The Matrix, while potentially strengthening its streaming position through a combination of HBO Max and Paramount+.

Regulatory review remains in focus. European Union antitrust approval is expected to be manageable, though California’s attorney general has launched an investigation into the transaction.