Paramount to Acquire Warner Bros. Discovery to Form a Global Media Giant

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Discovery, Inc. (WBD) announced a definitive merger agreement where Paramount will acquire WBD for $31 per share in cash, plus a 'ticking fee' if the deal closes after September 30, 2026. The transaction, unanimously approved by both companies' boards, values WBD at approximately $110 billion and is expected to close in Q3 2026, subject to regulatory approvals and shareholder votes. Paramount is issuing $47 billion of new Class B shares at $16.02 per share, supported by investments from the Ellison Family and RedBird Capital Partners. The merger aims to create a premier global media and entertainment company with enhanced streaming capabilities, a broad portfolio of intellectual property, and expanded consumer choice. Additionally, the filing notes the termination of a previous merger agreement with Netflix, Inc., with a termination fee of $2.8 billion paid to Netflix.

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About Warner Bros. Discovery, Inc.

Warner Bros. Discovery, Inc. is a prominent global media and entertainment company known for its extensive portfolio of content and entertainment services. The company's primary function is to create and distribute varied media products, including films, television programming, and digital content. Among its notable features is ownership of Warner Bros. Pictures, a significant player in the film industry, and HBO, a well-regarded cable network known for producing acclaimed original series. Warner Bros. Discovery also operates Discovery Channel, adding to its diverse range of content catering to different audiences. The company impacts multiple sectors, including cinema, television broadcasting, and digital streaming services. Its role in the market is bolstered by an ability to reach a vast audience through a mix of traditional and innovative platforms, as well as its strategic focus on expanding its digital and streaming presence. This makes Warner Bros. Discovery a key entity in shaping the future of entertainment consumption worldwide.