Paramount Skydance to Acquire Warner Bros. Discovery

Summary

On February 27, 2026, Paramount Skydance Corporation announced its entry into a definitive merger agreement to acquire Warner Bros. Discovery, Inc. for $31 per share in cash plus a 'ticking fee' for any delay in closing beyond September 30, 2026. The transaction values WBD at $81 billion in equity value and $110 billion in enterprise value. Paramount expects to generate over $6 billion in synergies, with a net debt-to-EBITDA of 4.3x on a synergized basis. The deal is backed by $47 billion in equity from the Ellison Family and RedBird Capital Partners, and $54 billion in debt commitments from Bank of America, Citigroup, and Apollo. Paramount will also offer existing stockholders a rights offering of up to $3.25 billion of new Class B shares.