Paramount‑Skydance has struck a deal to purchase Warner Bros Discovery for $110 billion.

Who won the battle for Warner Bros Discovery?

In a recent round of merger negotiations between the two largest media groups Paramount Skydance and Netflix, it was concluded that only the former could offer terms acceptable to Warner Bros Discovery. According to Reuters, the company that completed the purchase chose Paramount Skydance’s proposal for $110 billion. It is stated that Netflix could not match a comparable price and therefore abandoned its attempts to close the deal.

What did the head of Warner Bros say about the situation?

Bruce Campbell – chief revenue and strategy officer – told an all‑staff meeting: “Netflix had the right to offer similar terms for acquiring Paramount Skydance, but ultimately did not take advantage of that. This led to signing the agreement with PSKY this morning.” At present, parties to the deal have not confirmed these details, reports Reuters.

Offer amounts and market reaction

- Paramount Skydance offered $31 per Warner Bros share.
- Netflix offered $27.75 per share.

After the announcement, Paramount Skydance shares rose 24%, while Netflix’s shares climbed 13%. Investors broadly supported the streaming giant’s decision to abandon the fight for Warner Bros assets. It is expected that EU regulators will not impose significant demands upon execution of the agreement, as potential concessions would be minimal.

Regional reaction

In California, where both companies’ headquarters are located, authorities are closely monitoring the deal. Officials explained that it could significantly reshape Hollywood’s landscape. If Paramount wins, it stands to benefit from a possible merger of its Paramount+ and HBO Max services.

Why Paramount is already in this business

Paramount began active attempts to buy Warner Bros at the end of last year. It paid $2.8 billion that Warner Bros owed Netflix due to the termination of a previous agreement, and also increased “fallback” funds from $5.8 to $7 billion in case regulators refuse. At the same time, U.S. lawmakers express concerns: studio consolidation could reduce consumer choice, raise prices, and lead to job cuts in the film industry.