Paramount has officially locked in one of Hollywood’s biggest corporate shake ups, striking a deal to acquire Warner Bros Discovery and create a new global entertainment heavyweight.
The announcement comes just a day after Netflix confirmed it would not raise its offer, effectively clearing the path for the months in the making deal Paramount boss David Ellison had been aggressively pursuing.
If regulators sign off, the combined company will suddenly control an enormous slice of film, television, streaming and sports rights across the world, including a significant footprint in Australia.
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Under the agreement, Paramount will pay US $31 per share in cash for all outstanding WBD stock, valuing the company at about US $110 billion including debt, well above Netflix’s earlier US $83 billion offer which it declined to increase.
The transaction has unanimous board approval on both sides and is expected to close in the third quarter of 2026, pending regulatory clearance and shareholder approval, with Paramount required to pay WBD shareholders a US $0.25 per share quarterly ticking fee after September 30 if the deal has not yet closed.
Paramount’s successful bid also included covering the US $2.8 billion termination fee tied to Netflix’s earlier agreement, which the streamer has confirmed has now been paid and pocketed as it exits the deal.
The merger brings together major studios, streaming platforms and linear networks, including Paramount+, HBO Max and Pluto TV, creating a direct to consumer operation designed to rival the biggest players in the market.
Executives say the combined company will continue producing at least 30 theatrical films each year while expanding content for both owned platforms and third party distributors.
The portfolio spans premium sports rights such as the NFL, Olympics, UFC and Champions League, a deep roster of cable networks including CNN, TNT, HGTV, Food Network and MTV, and free to air broadcasters like CBS in the US, Channel 5 in the UK and Network 10 in Australia across more than 200 countries and territories.
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David Ellison, Paramount Chairman, whose relentless pursuit has placed him at the centre of one of Hollywood’s biggest takeover plays (image – Paramount)
David Ellison, Chairman and CEO of Paramount, said the deal was driven by a long term vision to unite two historic studios and accelerate growth across the industry.
“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 President and CEO David Zaslav framed the agreement as the best outcome for investors while preserving the value of the company’s legacy assets.
“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.”
For viewers, the implications are enormous, with franchises like Harry Potter, DC, Mission Impossible, Star Trek and Game of Thrones potentially sitting under one corporate roof.
Locally, the combined international portfolio could influence everything from commissioning decisions to licensing deals across Australian broadcasters and streamers, particularly given Paramount’s ownership of Network 10.
The deal still faces regulatory scrutiny in multiple markets, meaning the final shape of the new company and its impact on audiences may take time to emerge.
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