Paramount Acquires Warner Bros Discovery in Massive $110 Billion Hollywood Deal

Paramount has successfully acquired Warner Bros Discovery in a $110 billion transaction that was finalized Friday morning, according to a company executive speaking during an internal meeting. The mega-deal creates one of Hollywood's largest film studios and will likely combine streaming services HBO Max and Paramount+.

A massive entertainment industry consolidation has taken place with Paramount’s successful acquisition of Warner Bros Discovery for $110 billion, as revealed during a company-wide meeting Friday morning.

During the internal discussion, Bruce Campbell, who serves as Warner Bros’ chief revenue and strategy officer, explained the final stages of the transaction. “Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands,” Campbell stated during the meeting.

Neither Paramount nor Warner Bros provided immediate responses when contacted for official statements regarding the transaction.

This massive acquisition, which carries approximately $29 billion in debt obligations, represents one of the entertainment industry’s most significant restructuring moves in recent years. The combined entity will form one of the world’s most powerful film studios, giving Paramount access to Warner’s extensive catalog of popular franchises including “Fantastic Beasts” and “The Matrix” series.

The merger will significantly strengthen Paramount’s position in the competitive streaming market, potentially merging HBO Max with Paramount+ to better compete against industry leader Netflix for market dominance.

The successful bid concluded an intense competition after Netflix chose not to counter Paramount’s final offer of $31 per share, which Warner Bros’ leadership viewed as more attractive than Netflix’s previous $27.75 per share proposal.

Paramount had been pursuing Warner Bros since the end of last year through an aggressive acquisition campaign, consistently increasing their financial offers to secure the deal from the streaming giant.

David Ellison, son of technology billionaire Larry Ellison, leads Paramount and successfully convinced Warner’s board to return to negotiations by proposing enhanced cash terms.

In their final proposal, Paramount increased the penalty payment for potential regulatory rejection from $5.8 billion to $7 billion, demonstrating their commitment to completing the transaction.

Ancora Holdings, an activist investment firm holding shares in Warner Bros, had been advocating for the company to seriously consider Paramount’s acquisition proposals.

However, the merger will likely face extensive regulatory review from federal antitrust authorities, international regulators, and various state governments including California, despite the Ellison family’s political connections to President Donald Trump.

Political leaders from both major parties have expressed concerns that consolidating these entertainment companies could limit consumer options and lead to increased pricing.

Movie theater operators are also worried that merging major Hollywood production companies might eliminate jobs and reduce the total number of films available for theatrical release.