Paramount Discovery and Warner Bros. Discovery (WBD) signed an agreement this Friday (February 27) that formalizes the purchase of this one by that one, a transaction valued at 110 billion dollars.
“Paramount Skydance Corporation (PSKY) and Warner Bros. Discovery (WBD) announced that they have signed a definitive merger agreement under which Paramount will acquire WBD, forming a premier global media and entertainment company focused on expanding consumer choices and strengthening creative talent around the world,” according to a joint statement.
The terms of the agreement include payment of $31 per outstanding WBD share.
“The transaction has been unanimously approved by the companies’ boards of directors and is expected to close in the third quarter of 2026, subject to customary conditions, including regulatory clearances, and WBD shareholder approval,” detailed in the text.
A vote on the agreement is expected to take place in early spring 2026. If the process is not completed before September 30, “WBD shareholders will receive a commission of $0.25 per share for each quarter (measured daily) until closure”, it was specified.
The agreement further stipulates that Each WBD film “will have a full theatrical release, with a minimum of 45 days worldwide before being available on video, with the intention of reaching 60 to 90 days or more to maximize viewership for our most successful releases.”
The terms of the merger were made official one day after Netflix withdrew from the dispute to acquire WBD, following a new offer presented this week by Paramount.
Paramount’s offer responded to the one Netflix had presented in December, as part of a preliminary alliance to acquire WBD’s studios and streaming businesses for $27.75 per share, valuing assets at $72 billion, with a total enterprise value approaching $82.7 billion.
The transaction between these companies “opens new and attractive narrative opportunities in the merged company’s film and television studios, streaming platforms and first-tier linear platforms”, highlighted Paramount.
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