After a lot of back and forth, the merger Hollywood has been anticipating, or dreading, is officially on. Paramount and Warner Bros. Discovery formally unveiled the deal on Friday that will bring the two companies together under one banner. The David Ellison-owned giant will be purchasing WBD for $31 a share in cash, bringing the deal to a staggering $110 billion. It comes just one day after Netflix bowed out of the bidding when it was confirmed that Paramount had submitted a better offer that they didn’t want to contend with.
Netflix being left at the altar is a stunning outcome to what was already an industry-shaking move. Had they wished to try to work out another deal with Warners, the streaming giant had four days to do so, but the new price of poker proved a lot steeper and “no longer financially attractive” when compared to the $83 billion in cash Ted Sarandos and company put up. It’s a successful end to Paramount‘s months-long hostile takeover attempt, not only preventing their chief rivals from pairing up, but now adding a treasure trove of IP to its catalog just half a year after the already massive merger with Ellison‘s Skydance. Expectations are for the merger to close in the third quarter of 2026.
There was a lot of handwringing in Hollywood about what a Netflix deal would have done to the industry and, in particular, the theatrical business. The streamer has long been against giving many of its major films proper theatrical windows, only granting a few of its bigger titles, like Guillermo del Toro‘s Frankenstein and Rian Johnson‘s Wake Up Dead Man, shortened runs on the big screen. Sarandos had pledged to keep WBD movies rolling in theaters as per usual, but there were still fears about how the moviegoing experience would be affected, even if the alternative had its own concerns. Paramount, for its part, committed to shipping 30 movies per year, split evenly between both studios, with 45-day windows allotted for each release. In an official statement, Ellison touted the legacy of both Warner Bros. and Paramount and the possibilities for theaters and streaming with their union.
“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners, and shareholders — and we couldn’t be more excited for what’s ahead.”
What’s Next for the Deal Between Paramount and Warner Bros.?
Paramount will be taking over Warner Bros. Discovery at a critical time. The company bounced back at the box office in a big way last year, becoming the year’s clear-cut winner with blockbuster releases like Sinners, A Minecraft Movie, Superman, and more. It’s also expecting more success in 2026, with its upcoming slate including next month’s The Bride!, Mortal Kombat II in May, Supergirl in June, and Dune: Part Three in December. Before digging into its new box of toys, though, Paramount will still likely have to navigate the various legal channels needed to get approval. Notably, the new deal includes a ticking fee of $0.25 per share to be paid out per quarter after September 30 until it passes the regulatory processes. In other words, the deal will continue to grow more expensive until it gets approved, which isn’t a guarantee, considering Senator Corey Booker has already called on Ellison to testify before Congress and California Attorney General Rob Bonta has promised a “vigorous” review of the deal.
Then there’s President Donald Trump, who has loomed over the fight for Warner Bros. Discovery for a while. He previously demanded that Netflix fire board member Susan Rice, a former UN ambassador to the U.S., or “pay the consequences,” and, back in December, he weighed in further, adding that it’s “imperative that CNN be sold” despite WBD‘s initial plans to spin the news media side of the company out into its own entity. The Wall Street Journal reported shortly before that Ellison had made “assurances” to the president that there would be changes to CNN if his takeover was successful. In general, the merger will bring sweeping changes across the board for both companies, with layoffs expected in the thousands.
via Collider