Paramount Skydance Corp. has clinched a $111 billion agreement to acquire Warner Bros. Discovery, defeating Netflix in a months-long takeover battle that reshapes the global entertainment landscape.

The victory caps an intense bidding war marked by legal threats, shareholder lobbying, political engagement in Washington, and multiple revised offers. Paramount’s winning bid far exceeded Netflix’s $82.7 billion proposal, ultimately convincing Warner Bros.’ board that the all-company offer provided superior value.

A High-Stakes Bidding War Ends

Netflix had agreed in December to acquire Warner Bros.’ studio and streaming assets for $27.75 per share, excluding its cable operations. However, Paramount returned with a sweeping proposal for the entire company, raising its bid and agreeing to cover the $2.8 billion termination fee Warner Bros. would owe Netflix, along with additional financial incentives.

Netflix ultimately declined to match the price, stating that the revised terms were no longer financially attractive. Shares of Netflix rose nearly 9% in premarket trading, suggesting investors approved of the company’s decision to preserve capital discipline.

Meanwhile, Warner Bros. shares — which had surged 130% since Paramount’s interest emerged — pulled back as expectations of a continued bidding war faded. Paramount shares gained roughly 4%.

The Ellison Factor

The deal represents a major strategic win for Paramount CEO David Ellison, backed by his father, billionaire Larry Ellison. Personal equity guarantees totaling $45.7 billion from a family trust helped strengthen Paramount’s bid credibility.

Paramount has secured $57.5 billion in committed debt financing from Bank of America, Citigroup, and Apollo Global Management, reinforcing financial backing for the transaction.

The combined entity would unite Paramount’s assets — including CBS and its film studio — with Warner Bros.’ HBO, CNN, and major cable networks, creating one of the most expansive media empires globally.

Regulatory Scrutiny Ahead

Despite securing board approval, the transaction faces intense regulatory review. The US Senate Judiciary Committee has scheduled hearings to examine competitive implications. Senator Elizabeth Warren described the merger as a potential antitrust concern, while other lawmakers signaled further scrutiny.

Paramount has agreed to pay a $7 billion termination fee if regulatory approval fails, plus a ticking fee structure should the closing be delayed beyond September 30 — a sign of confidence but also acknowledgment of political risk.

Streaming Industry at a Crossroads

Netflix, with over 325 million global subscribers, remains the dominant streaming platform. However, legacy media companies have struggled to match its scale as traditional TV revenues decline.

Paramount’s acquisition reflects a consolidation strategy aimed at combining libraries, news networks, and global distribution power to compete more effectively in an evolving streaming marketplace.

The deal signals that scale — not just content — is becoming the decisive advantage in entertainment. Whether regulators permit that scale will determine the industry’s next chapter.