Paramount Skydance has agreed to buy Warner Bros. Discovery in an $110 billion deal signed Friday morning, ending a high-profile bidding war that brought in Netflix.
Warner Bros. executives acknowledged that Netflix had the legal right to accept the Paramount Skydance offer, but ultimately rejected it, according to an internal town hall reviewed by Reuters. This decision paved the way for the conclusion of the agreement with PSKY.
Paramount Skydance shares soared nearly 20% on the news, and Netflix rose 13% as investors cheered the company’s decision to pull out of the takeover race.
Paramount’s latest bid of $31 per share was considered better than Netflix’s offer of $27.75 per share for Warner’s studio and streaming assets. The proposed amendments include increased contract protections, with Paramount increasing its termination fee from $5.8 billion to $7 billion and agreeing to cover the $2.8 billion termination fee Warner owes to Netflix.
The deal includes approximately $29 billion in debt and ranks among the largest media deals in recent years, consolidating major film and streaming assets under one umbrella.
Paramount could gain access to Warner’s intellectual property portfolio, which includes franchises like “Fantastic Beasts” and “The Matrix,” while also strengthening its streaming position through the combination of HBO Max and Paramount+.
Regulatory reviews remain in focus. California’s attorney general has launched an investigation into the deal, although it is expected to pass European Union antitrust approval.
