Paramount Skydance Corporation and Warner Bros. Discovery, Inc. Announced a definitive merger agreement on February 27, 2026, under which Paramount will acquire Warner Bros. Discovery in a deal valued at $110 billion, according to a joint press release.
The acquisition will create a new global media and entertainment company focused on expanding consumer choice and empowering creative talent, the companies stated. Paramount will issue $47 billion of new Class B shares at $16.02 per share, with a fully committed investment from the Ellison Family and RedBird Capital Partners, to finance the deal.
Under the terms of the agreement, Paramount will pay $31.00 per share in cash for all outstanding shares of Warner Bros. Discovery. The combined entity intends to produce a minimum of 30 theatrical films annually, aiming to drive job growth within the film and creative industries.
The merger is expected to generate over $6 billion in cost savings, achieved through efficiencies in areas such as streaming technology and cloud providers, Paramount strategy chief Andy Gordon said. A significant component of the strategy involves integrating the streaming services Paramount+ and HBO Max into a single platform, serving more than 200 million direct-to-consumer subscribers across over 100 regions, according to Paramount CEO David Ellison.
The transaction values Warner Bros. Discovery at 7.5 times fully synergized 2026 EBITDA. However, the deal will also result in a combined net debt of approximately $79 billion for the newly formed company, Paramount disclosed on Monday.
Warner Bros. Discovery is a leading global media and entertainment company responsible for creating and distributing a wide range of branded content across television, film, streaming, and gaming.
