Paramount has agreed to acquire Warner Bros. Discovery in a $111 billion transaction that combines two major media companies and brings a broad portfolio of film, television and streaming assets under one corporate structure.
The transaction values Warner Bros. Discovery at $31 per share. It includes a ticking fee of $0.25 per share per quarter beginning after Sept. 30, 2026, increasing shareholder consideration if the transaction has not closed by that date. Paramount agreed to fund the $2.8 billion termination fee tied to Warner Bros. Discovery’s prior agreement with Netflix.
The acquisition brings Warner Bros. Pictures, New Line Cinema and DC Studios under Paramount’s control, along with DC’s film and television rights portfolio that includes Batman, Superman, Wonder Woman and other Justice League characters. The deal also includes HBO and its programming slate, including Game of Thrones, House of the Dragon, The Last of Us, Succession, Euphoria and The White Lotus. Paramount gains Warner Bros.’ film franchises such as Harry Potter, The Matrix, Dune and Barbie. Through New Line Cinema, it also holds existing film rights related to The Lord of the Rings adaptations.
On the television side, Paramount takes over Warner Bros. Television, one of the largest scripted television producers globally, with a library that includes Friends, The Big Bang Theory and Abbott Elementary.
The transaction also includes cable and news networks such as CNN, TNT, TBS, Cartoon Network and Adult Swim, as well as Discovery’s nonfiction portfolio including HGTV, Food Network, TLC, Animal Planet and Discovery Channel. The Max streaming platform becomes part of Paramount’s streaming operations.
Paramount founder David Ellison said, “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.”
Warner Bros. Discovery CEO David Zaslav added, “I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction.”
Financing includes $47 billion in equity commitments from the Ellison family and RedBird Capital, along with $54 billion in debt financing from Bank of America, Citigroup and Apollo.
The companies expect the transaction to combine Paramount’s operations with Warner Bros. Discovery’s film studios, television production business, cable networks and streaming platforms under one corporate structure, with closing projected for the third quarter of 2026, subject to regulatory and shareholder approvals.
