Paramount Completes $111 Billion Deal for Warner Bros. Discovery

As of October 6, the acquisition is officially complete after legal approval. Paramount and Warner Bros. has been renamed Skydance as the new combined corporation. The entity will have annual revenue of almost $70 billion following the merger. A federal judge approved the deal in late September, allowing the final step to proceed.

This deal began earlier this year when the entertainment industry saw a high-stakes megadeal. Warner Bros. Discovery struggled under billions of dollars in debt for years. Declining cable viewership and fierce competition from streaming platforms pushed the company to consider strategic changes. The board started exploring a potential sale after receiving unsolicited interest in October 2025.

Several major players saw the potential in acquiring the media giant during the bidding process. In December, Netflix announced it would acquire WBD’s studios and streaming for $82.7 billion. Paramount emerged as a serious contender alongside Netflix with its own proposal. The initial focus was on acquiring just Warner's film and television assets.

However, WBD’s board eventually determined that an offer from the streaming giant Netflix was the most attractive initially. They cited concerns about Paramount’s heavy debt load at the time. The board noted a deal would leave the combined company burdened with $87 billion in debt. This risk was something they were unwilling to take at the start.

Paramount persisted in its attempts to acquire WBD through various proposals and legal tactics. In January, the company filed a lawsuit seeking more information about the Netflix deal. A month later, it offered a $0.25 per share ticking fee if the deal failed to close by December 31, 2026. It also promised a $2.8 billion breakup fee if Warner backed out of its deal with Netflix.

In February, Paramount increased its offer to $31 per share in a final attempt to secure the deal. This prompted the WBD board to consider it as a superior offer again. Netflix declined to increase its bid and withdrew from the negotiations on February 26. The co-CEOs stated the deal was no longer financially attractive at the price required.

The agreement includes significant financial backing to manage the debt load for the new company. In addition to existing debt, the company is set to assume approximately $33 billion in debt Warner Bros. Discovery holds. The deal will be backed by a $54 billion debt commitment from Bank of America and Apollo Global Management. It also includes $45.7 billion in equity from Larry Ellison.

Concerns about leadership and employment arose during the process with potential job cuts. Ellison has warned about significant job reductions that are expected in the near future. Critics worry about potential job losses and lower wages under his ownership. His father Larry Ellison is a major Trump donor, which adds to concerns about news reporting direction.

Regulatory hurdles slowed the final approval of the merger significantly before completion. The U.S. Department of Justice approved the deal in June after initial review. However, a coalition of 12 state attorneys general filed a lawsuit on July 13 to block the merger. A federal judge paused the deal for 14 days in response to the legal challenge.

State officials argued the merger would stifle competition and increase subscription prices for viewers. California attorney general Rob Bonta said they intended to be vigorous in their review of the case. Other states including New York and Washington joined the coalition led by Bonta. Senators Elizabeth Warren and Bernie Sanders also voiced concerns about market power earlier.

Political pressure became a point of contention regarding news divisions under the new ownership. Trump has personally sought concessions from news divisions critical of him before his FCC would approve the Ellison takeover. He has publicly stated intentions to bring CNN to heel under new owners. Some employees at Warner-owned CNN expressed concern over this influence on reporting.

The streaming services are set for future consolidation under the new combined structure. Paramount+, HBO Max, and Discovery+ will be combined eventually into a unified platform. This structural change follows the official merger completion on October 6. The final approval came after a judge decided in late September that the deal could proceed.