Merger creates global media powerhouse spanning film, streaming and sports
Summary
– Paramount to acquire Warner Bros. Discovery for $31 per share in cash
– Deal valued at $81B equity and $110B enterprise value with $6B in projected synergies
– Combined company to unite major franchises, streaming platforms, and sports rights
Paramount has officially announced its acquisition of Warner Bros. Discovery, confirming one of the largest media mergers in recent history.
According to the company’s press release, the two sides have entered into a definitive merger agreement under which Paramount will purchase all outstanding Warner Bros. Discovery shares for $31 per share in cash. The transaction values Warner Bros. Discovery at $81 billion in equity value and $110 billion in enterprise value. The boards of both companies have unanimously approved the agreement.
The deal is expected to close in the third quarter of 2026, pending regulatory clearance and shareholder approval. If the transaction does not close by September 30, 2026, Warner Bros. Discovery shareholders will receive a quarterly “ticking fee” of $0.25 per share until the transaction is completed.
Leadership from both companies framed the merger as a transformative move. Paramount’s CEO emphasized the goal of building a next-generation entertainment company while preserving the legacies of both studios. Warner Bros. Discovery’s CEO pointed to shareholder value and long-term industry stability as central to the agreement.
The combined entity will bring together a massive content library exceeding 15,000 film titles and thousands of hours of television programming. Franchises under one roof will include Game of Thrones, Harry Potter, Mission Impossible, Top Gun, the DC Universe, Lord of the Rings, Transformers, Star Trek, and SpongeBob SquarePants. The merged company plans to maintain both major film studios and target 15 theatrical releases per studio each year.
Streaming will play a central role in the new structure. Paramount+ and HBO Max will operate within a unified direct-to-consumer strategy, alongside Pluto TV. Executives describe the goal as strengthening competition in the streaming market by increasing subscriber growth, engagement, and profitability.
The companies also highlighted their combined sports portfolio, which will feature rights to the NFL, Olympics, UFC, PGA Tour, NHL, Big Ten and Big 12 football, NCAA basketball, and the Champions League. Distribution across multiple platforms is expected to enhance accessibility for fans.
Financially, the transaction is supported by $47 billion in equity commitments from the Ellison family and RedBird Capital Partners, as well as $54 billion in debt financing from major financial institutions. Paramount projects more than $6 billion in synergies driven by technology integration, operational efficiencies, and real estate optimization.
Paramount also confirmed it has terminated its prior all-cash tender offer for Warner Bros. Discovery shares as part of entering this merger agreement.
The ripple effects of the merger could extend across sports and entertainment. All Elite Wrestling currently operates under the Warner Bros. Discovery umbrella, while UFC programming streams on Paramount+. With both brands soon connected under the same corporate structure, industry observers will closely watch how broadcast rights and partnerships evolve.
Paramount will host a conference call and webcast on March 2 at 8:30 a.m. EST to further discuss the acquisition and outline next steps.
