Paramount Acquires Warner Bros. Discovery for $110 Billion
On February 27, 2026, Paramount Skydance Corporation announced its acquisition of Warner Bros. Discovery at a price of $31 per share in cash. The transaction, valuing WBD at $110 billion in enterprise value, is expected to close in the third quarter of 2026, subject to regulatory and shareholder approvals.
Details of the Acquisition
Paramount will acquire 100% of the outstanding shares of Warner Bros. Discovery at a cash price of $31 per share, plus a 'ticking fee' of $0.25 per share per quarter if the closure does not occur before September 30, 2026. The deal values WBD at $81 billion in equity value and $110 billion in enterprise value, representing a 7.5x multiple on the fully synergized 2026 EBITDA. Both boards of directors have unanimously approved the transaction. A shareholder vote of WBD is expected in spring 2026.
Financing the Acquisition
Paramount will finance the acquisition through $47 billion of newly issued Class B shares at $16.02 per share, fully backed by the Ellison family and RedBird Capital Partners. The transaction also includes financing commitments of $54 billion from Bank of America, Citigroup, and Apollo, comprising $15 billion to support WBD's existing bridge facility and $39 billion in new additional debt. Existing Paramount shareholders will have the opportunity to participate in a rights offering of up to $3.25 billion at the same price of $16.02 per share. The transaction is not subject to any financing condition.
Closing Conditions
The closure of the transaction remains subject to customary conditions, including obtaining regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act and other applicable antitrust laws, as well as the approval of WBD shareholders. The press release does not specify the specific risks associated with these regulatory approvals nor does it quantify the potential financial impacts of a refusal.
