Paramount Skydance expects to complete its acquisition of Warner Bros. Discovery (WBD) by September 30. The deal is valued at $110 billion to $111 billion including debt. On September 21, attorneys general from 12 states and the Writers Guild of America dropped lawsuits opposing the merger after reaching agreements with the buyer, leaving legal formalities before closing.
Netflix initially won WBD’s board support with an offer of $27.75 per share. Paramount raised its bid to $31 per share, or about $81 billion in equity value. WBD accepted on February 26, 2026, subject to a higher Netflix bid. Netflix withdrew and received $2.8 billion in compensation. Vedomosti reports that the streaming company weighed potential years of antitrust litigation, $8 billion to $10 billion in possible tax costs and a $5.8 billion termination fee.
Opponents warned the merger could raise content prices, reduce production and worker compensation, and concentrate media ownership. California Attorney General Rob Bonta stressed that settling the case did not mean he supported the merger. Paramount agreed to cover up to $40 million in legal costs, contribute $17.5 million to a Writers Guild health fund, provide $47.5 million for worker retraining and refrain from laying off CBS News writers for five years.
The combined studio must release at least 30 feature films annually for two years and 32 for the next three, including independent films and wide theatrical releases. Each shortfall can incur a $30 million penalty. Wide-release films must remain in cinemas for at least 45 days and wait 90 days before streaming. The company must also contribute at least $5 million annually to an independent-film fund for five years and spend at least $300 million each year on U.S. production.
The group will bring together Paramount Pictures, Warner Bros. Pictures, New Line Cinema, DC Studios, HBO, CNN, CBS News, and television and gaming operations. Management projects $6 billion in savings, but the company would carry about $80 billion in debt. WBD could receive $7 million per day if closing slips past September 30. A five-member council of journalists with at least ten years’ experience is to address editorial-independence disputes. Critics worry about job cuts and political influence over CNN; the council is not due to be established for 180 days. Source: Vedomosti.