Mega-studio merger becomes one of the biggest in Hollywood history, now set to face scrutiny.
The Paramount / Warner Bros Discovery deal is worth a massive A$154b.
The merger is expected to close in the third quarter of 2026, subject to regulatory clearances and approval by WBD shareholders.
Under the terms of the agrement, Paramount wil pay US $31.0 per share in cash for all outstanding shares of WBD.
The merger unlocks storyteling oportunities acros the combined company’s best-in-class film and television studios, streaming and linear platforms.
The combined company will own a film library of more than 15,000 titles and thousands of hours of television programming with franchises including Harry Potter, Mission Impossible, Lord of the Rings, Game of Thrones, the DC Universe, Teenage Mutant Ninja Turtles, Transformers, Star Trek and SpongeBob SquarePants.
“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead,” said Paramount CEO David Ellison.
“I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction,” saoid WBD CEO David Zaslav.
However the Writers Guild of America is one organisation opposed to the deal.
“The loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked,” it said.
Cinema United, the trade organisation representing movie theatres, was also opposed to a Netflix-owned Warner Bros for fear of what it might mean for the future of films. They noted that a combination of Paramount and Warner Bros would consolidate as much as 40 per cent of each year’s domestic box office in a single studio.
“We have been clear from the outset about our concerns around consolidation, and nothing that has occurred within the past 36 hours has changed that,” said Cinema United’s president and CEO Michael O’Leary in the statement.
“Studio consolidation historically leads to fewer movies being made, and at this juncture, there is no reason to believe the outcome here will be any different. We continue to urge regulators to heed the lessons of the past.”
The US Department of Justice has already initiated reviews, and other countries are also expected to do so.
Warner Bros. CEO David Zaslav told employees that the deal would likely take six to 12 months to close. The transaction will face scrutiny in the U.K. and the European Union, though those jurisdictions would be more likely to impose conditions rather than try to block it outright.
Netflix said Warner Bros. Discovery “provided notice to Netflix that it had terminated the Merger Agreement in accordance with its terms in order to enter into an Agreement and Plan of Merger with PSKY in respect of such Company Superior Proposal.”
Upon the termination, Netflix also said Paramount Skydance paid a US$2.8 billion fee Netflix was owed in accordance with the merger agreement it had signed with Warner Bros. Discovery.