Paramount Skydance Finalizes $110B Acquisition of Warner Bros. Discovery at $31/Share Cash

summarizeSummary

Paramount Skydance has entered into a definitive agreement to acquire Warner Bros. Discovery for $31.00 per share in cash, valuing the company at $110 billion enterprise value, with committed financing.

check_boxKey Events

• Definitive Merger Agreement Signed

  Paramount Skydance Corporation has entered into a definitive merger agreement to acquire Warner Bros. Discovery, Inc.

• Significant Cash Consideration for WBD Shareholders

  WBD shareholders will receive $31.00 per share in cash, plus a potential ticking fee if the closing extends beyond September 30, 2026.

• Total Enterprise Value of $110 Billion

  The transaction values Warner Bros. Discovery at an enterprise value of $110 billion, representing a 7.5x multiple on fully synergized 2026 EBITDA.

• Financing Fully Committed

  The acquisition is funded by $47 billion in equity from the Ellison Family and RedBird Capital Partners, and $54 billion in debt commitments from major financial institutions, with no financing conditions.

auto_awesomeAnalysis

This filing details the definitive merger agreement for Paramount Skydance Corporation to acquire Warner Bros. Discovery, Inc. for a total enterprise value of $110 billion. WBD shareholders will receive $31.00 per share in cash, representing a significant premium over the current market price, which is a highly positive outcome for WBD investors. The transaction is fully backed by $47 billion in equity from the Ellison Family and RedBird Capital Partners, alongside $54 billion in debt commitments, ensuring financing certainty. Paramount also paid a $2.8 billion termination fee to Netflix, resolving a prior merger agreement and clearing a path for this acquisition. The deal is expected to close in Q3 2026, subject to regulatory clearances and WBD shareholder approval, and is projected to yield over $6 billion in synergies, positioning the combined entity as a major global media and entertainment competitor.