The Digester

Paramount to Buy Warner Bros. Discovery for $111 Billion

Mar 1st 2026

Paramount and Warner Bros. Discovery agreed to a $111 billion merger at $31 a share after Netflix withdrew, backed by large equity and debt financing, regulatory reviews, and company commitments on films and windows.

  • Paramount will acquire Warner Bros. Discovery for $111 billion at $31 per share.
  • The deal includes a ticking fee of $0.25 per quarter after September 30, 2026 and a $7 billion breakup fee if regulators block the merger.
  • Financing is backed by $47 billion in equity commitments from the Ellison family and RedBird Capital and $54 billion in debt from Bank of America, Citigroup, and Apollo.
  • Paramount expects the deal to close in the third quarter of this year and says other strategic partners may join the equity group at closing.
  • Paramount committed to keep Paramount and Warner Bros. as independent studios, produce 15 films each per year, maintain 45-day theatrical windows, and continue selling programming to third parties.
  • Regulatory scrutiny is already under way, including a review by the California Attorney General, and the companies expect layoffs and possible asset sales after closing, while Paramount projects $6 billion in cost synergies.

Sources

hollywoodreporter.com