The Paramount Skydance Corporation (NASDAQ: PSKY) and Warner Bros. Discovery, Inc. (NASDAQ: WBD) have announced on 27 February 2026 signed a binding merger agreement under which Paramount will acquire all outstanding shares of Warner Bros. Discovery in cash. The transaction has an enterprise value of approximately 110 billion dollars and is expected to be completed in third quarter 2026 subject to the usual regulatory approvals and the consent of WBD shareholders.
Under the terms of the agreement, Paramount will pay 31 dollars per WBD share in cash. If the financial statements are finalised by 30 September 2026 If the closing does not take place, WBD shareholders will receive a ticking fee of USD 0.25 per share per quarter until the final closing. The directors of both companies have already unanimously approved the agreement.
Through the merger, Paramount intends to global media and entertainment company that can operate more competitively in cinema production as well as streaming and linear TV. According to the companies, the combined unit will At least 30 feature films per year and thereby offer all productions an exclusive worldwide cinema window of at least 45 days with the aim of ensuring that this 60-90 days or more to expand.
The association is also intended to Content libraries and streaming platforms of both groups and thus create a greater choice for viewers. The well-known brands and franchises include "Game of Thrones", "Mission: Impossible", "Harry Potter", "Top Gun", the DC universe and "SpongeBob SquarePants".
The deal is being financed by 47 billion dollars in newly issued capitalwhich was fully committed by the Ellison family and RedBird Capital Partners, as well as additional 54 billion dollars in debt capital. Paramount expects synergies of more than 6 billion dollarswhich are to be realised through technical integration, operational efficiency gains and other measures.
Paramount CEO David Ellison explained in the press release that the merger combines the strengths of both studios and increases the opportunities for creative storytelling and competitiveness in the changing media market. WBD CEO David Zaslav emphasised that the conclusion of the agreement was a strong value contribution for shareholders.
The transaction is still subject to regulatory reviews, in particular anti-trust approvals in the US and worldwide, and the approval of Warner Bros. Discovery shareholders.