Paramount Skydance to Acquire Warner Bros. Discovery in $81 Billion Definitive Merger Agreement
Summary
Paramount Skydance has entered into a definitive agreement to acquire Warner Bros. Discovery for $31.00 per share in cash, an $81 billion equity value transaction, terminating the prior tender offer.
Key Events
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Definitive Merger Agreement Signed
Paramount Skydance Corporation will acquire Warner Bros. Discovery, Inc. for $31.00 per share in cash.
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$81 Billion Equity Value Transaction
The acquisition values Warner Bros. Discovery at an equity value of $81 billion and an enterprise value of $110 billion.
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Prior Tender Offer Terminated
The previous tender offer by Paramount Skydance for WBD shares has been terminated concurrently with the execution of the definitive merger agreement.
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Board Approval and Expected Close
The transaction has been unanimously approved by both companies' Boards of Directors and is expected to close in Q3 2026, pending regulatory clearances and WBD shareholder approval.
Analysis
This filing announces a definitive merger agreement where Paramount Skydance Corporation will acquire Warner Bros. Discovery, Inc. for $31.00 per share in cash, valuing WBD at an equity value of $81 billion. This marks the culmination of previous tender offers and proposals, transitioning to a binding agreement. The transaction, unanimously approved by both boards, is expected to close in Q3 2026, subject to customary closing conditions including regulatory clearances and WBD shareholder approval. This is a transformational event for Warner Bros. Discovery shareholders, as the company will cease to exist as an independent publicly traded entity, receiving a significant cash premium.
At the time of this filing, PSKY was trading at $13.92 on NASDAQ in the Technology sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $9.95 to $20.86. This filing was assessed with positive market sentiment and an importance score of 10 out of 10.