Paramount Skydance Corporation (NASDAQ: PSKY) and Warner Bros. Discovery, Inc. (NASDAQ: WBD) announced a definitive agreement under which Paramount will acquire WBD in an all-cash transaction at US$31.00 per share (C$42.25), representing US$81 billion (C$110.4 billion) in equity value and US$110 billion (C$149.9 billion) in enterprise value. Unanimously approved by both Boards, the transaction is expected to close in Q3 2026, subject to regulatory clearances and WBD shareholder approval. Should closing not occur by September 30, 2026, WBD shareholders will receive a US$0.25 (C$0.34) per share quarterly ticking fee.

Funding comprises US$47 billion (C$64.1 billion) in equity from the Ellison Family and RedBird Capital Partners, and US$54 billion (C$73.6 billion) in debt commitments from Bank of America, Citigroup, and Apollo. Paramount anticipates over US$6 billion (C$8.2 billion) in synergies. The agreement includes a US$7 billion (C$9.5 billion) regulatory termination fee and Paramount's assumption of WBD's US$2.8 billion (C$3.8 billion) termination fee payable to Netflix.

Centerview Partners and RedBird Advisors are lead financial advisors to Paramount, with Bank of America Securities, Citi, M. Klein & Company, and LionTree as additional advisors; Cravath, Swaine & Moore LLP and Latham & Watkins LLP serve as legal counsel. Allen & Company, J.P. Morgan, and Evercore advise WBD, with Wachtell Lipton and Debevoise & Plimpton LLP as legal counsel. Barclays advises Paramount's Special Committee, with Cleary Gottlieb as counsel. CAD figures reflect the February 27, 2026 rate of US$1.00 = C$1.363.