Paramount Skydance is reportedly set to acquire Warner Bros Discovery in a 111 billion dollar deal. The development follows Netflix’s withdrawal from the bidding process. The streaming giant is said to have found the revised valuation financially unattractive.
Warner Bros Discovery’s board reportedly considered Paramount’s improved 31 dollar per share cash offer superior. Netflix’s earlier proposal was valued at 82 billion dollars. Reports suggest the final agreement also covers select assets and financial obligations.
Paramount has agreed to pay a 7 billion dollar reverse break fee. It will also cover the 2.8 billion dollar termination fee owed by Warner Bros to Netflix. The scale of the transaction signals a major shift in global media ownership.
If finalised, the takeover would give Paramount control of Warner Bros’ film studio, HBO Max subscribers, CNN, Food Network and key sports networks. This move is expected to significantly reshape the Hollywood media landscape. Paramount’s existing portfolio already includes CBS, Nickelodeon and Comedy Central.
However, regulatory scrutiny remains a major hurdle. California Attorney General Rob Bonta has confirmed an ongoing investigation into the acquisition. Approval from the US Department of Justice and European regulators is still pending.
The deal has also sparked political and media debate. Paramount is backed by Larry Ellison and led by David Ellison. Observers have noted perceived ties to former President Donald Trump, who has previously criticised CNN.
Mark Thompson, CNN chief, has urged employees not to speculate about the network’s future. If approved, the merger could lead to restructuring and potential layoffs across Hollywood. Industry watchers are closely monitoring further developments.
