Paramount Skydance agreed to acquire Warner Bros. Discovery in a $110 billion deal signed Friday morning, capping a high-profile bidding battle that attracted Netflix.
According to an internal meeting reviewed by Reuters, Warner Bros executives confirmed that Netflix had the legal right to match Paramount’s Skydance offer, but ultimately declined. This decision paved the way for the signing of an agreement with PSKY.
Shares of Paramount Skydance jumped nearly 20% on the news, while Netflix climbed 13% as investors welcomed its decision to withdraw from the buyout race.
Paramount’s latest offer of $31 per share was deemed higher than Netflix’s $27.75 per share proposal for Warner’s studios and streaming assets. The revised offer included stronger transaction protections, with Paramount raising its regulatory termination fee to $7 billion from $5.8 billion and agreeing to cover the $2.8 billion breakup fee owed by Warner to Netflix.
The transaction, which includes approximately $29 billion in debt, ranks among the largest media deals in recent years and will bring together significant theatrical and streaming assets under one roof.
Paramount has access to Warner’s intellectual property portfolio, including franchises such as Fantastic Beasts and The Matrix, while potentially strengthening its streaming position through a combination of HBO Max and Paramount+.
Regulatory review remains the focus. Approval from European Union antitrust laws should be manageable, even though California’s attorney general has opened an investigation into the transaction.