Paramount Skydance to Acquire Warner Bros. Discovery for $111 Billion
Paramount Skydance has officially secured an agreement to acquire Warner Bros. Discovery for $111 billion, a deal that includes its debt. This announcement follows Netflix’s withdrawal from the bidding war, allowing Paramount to finalize its superior offer. The acquisition will significantly enhance Paramount’s position in the competitive streaming market.
Valued at $31 per share, the deal is expected to strengthen the new entity under CEO David Ellison amid rising competition from streaming giants like Netflix, Amazon, and Disney. Paramount shares surged 24.2% following the news, rebounding from a 50% decline this past year.
Despite the promising outlook, the merged company will carry substantial debt, amounting to $111 billion, and must navigate the challenges of balancing content investments with debt reduction once the deal receives regulatory approval.
