Paramount Closes $110 Billion Warner Bros. Discovery Acquisition in Landmark Hollywood Merger

Paramount completed its $110 billion acquisition of Warner Bros. Discovery on Tuesday, October 6, finalizing one of the largest media mergers in history after months of legal disputes, regulatory scrutiny, and a rival bid from Netflix. The deal, championed by Paramount Skydance Chairman and CEO David Ellison, values Warner Bros. Discovery at an enterprise value of $110 billion, representing a multiple of 7.5 times on a fully loaded basis, with WBD shareholders receiving $31 per share in cash.

To finance the transaction, Paramount issued $47 billion of new Class B shares at $16.02 per share, backed by a fully committed investment from the Ellison Family and RedBird Capital Partners. The final purchase price represents a 63 percent premium over Paramount's initial reported offer and is substantially higher than a competing all-cash bid from Netflix, which WBD's board ultimately rejected. Paramount had previously extended a $30 per share tender offer in early 2026, countering the Netflix proposal that had been valued at an enterprise value of approximately $82.7 billion.

The combined company intends to compete directly with leading streaming services by uniting the studios, franchises, and libraries of both Paramount and Warner Bros. It has committed to producing a minimum of 30 theatrical films annually and plans to expand its direct-to-consumer streaming business. The Ellison Family and RedBird Capital Partners will be the largest shareholders in the merged entity.