Warner Bros Signs $110 Billion Deal with Paramount
Warner Bros Discovery has consented to be purchased by Paramount Skydance in a $110 billion agreement finalized Friday morning, based on an audio excerpt from a worldwide town hall meeting held by the company.
"Netflix was legally entitled to accept the PSKY proposal. As you all are aware, they ultimately chose not to proceed with that. This then led to a signed contract with PSKY as of this morning. That's the current situation," says Bruce Campbell, chief revenue and strategy officer at Warner Bros, during the townhall.
The agreement - encompassing roughly $29 billion in liabilities - represents one of the most significant media transformations in Hollywood and will establish one of the largest film studios globally, enabling Paramount to access Warner's extensive intellectual property, featuring franchises like "Fantastic Beasts" and "The Matrix."
It will also enable Paramount to enhance its streaming initiatives, potentially merging HBO Max and Paramount+, allowing it to capture market share and compete with market leader Netflix.
The deal concludes a bidding contest as Netflix chose not to match Paramount's recent $31-per-share bid, which Warner Bros considered better than the streaming leader's $27.75-per-share offer for its assets.
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Since late last year, Paramount has been seeking to acquire Warner Bros through a hostile strategy aimed at prying the company away from the streaming giant by continually increasing its bid.
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The firm, spearheaded by billionaire Larry Ellison's son David Ellison, lured Warner's board back to negotiations by suggesting the prospect of a better cash proposal.
In its updated proposal, Paramount increased the termination fee it would incur if the deal does not receive regulatory approval to $7 billion from $5.8 billion.
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Activist investor Ancora Holdings, which holds a minor share in Warner Bros, had increased its pressure on the HBO parent to interact more with Paramount.