US media conglomerate Paramount Skydance announced Thursday it will acquire Warner Bros. Discovery in a $110 billion deal, beating Netflix, Inc. in a bruising bidding war.

The agreement ends a five-month saga and creates a media giant whose impact on a struggling industry — and links to Donald Trump’s White House — will be closely watched.

The merged company will include CNN, CBS, HBO, and Nickelodeon, along with franchises such as Harry Potter, Game of Thrones, the DC Universe, Mission Impossible, and SpongeBob SquarePants.

Paramount will pay $31 per share in cash for all Warner Bros. shares, implying an equity value of $81 billion and $110 billion including assumed debt. The boards of both companies approved the deal, which is expected to close in the third quarter of 2026.

"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," said Paramount chairman and CEO David Ellison.

The deal ends a bidding battle after Netflix withdrew, unwilling to match Paramount’s offer.

Wall Street welcomed the news: Paramount shares rose more than 20 percent Friday, while Netflix gained nearly 14 percent.

"Netflix's withdrawal from the race will leave it free to refocus on its business, while its closest competitors grapple with long and distracting regulatory approval and merger integration processes," said HSBC analyst Mohammed Khallouf.

The Ellison family will control a global media empire but take on substantial debt. If regulators approve the merger, David Ellison is expected to implement cost-cutting measures.

His father, Oracle billionaire Larry Ellison, largely financed the deal, providing a guarantee that persuaded the Warner Bros. board. Larry Ellison, a longtime ally of President Donald Trump, could draw White House scrutiny.

The deal still faces regulatory hurdles, including reviews by the European Commission and several US states, including California.

"Paramount/Warner Bros is not a done deal," California Attorney General Rob Bonta said Friday.

Paramount’s offer includes financing from Middle Eastern sovereign wealth funds in Saudi Arabia, Qatar, and Abu Dhabi, which could raise national security concerns. Paramount has offered a $7 billion regulatory termination fee if the deal is blocked and has covered the $2.8 billion breakup fee Warner Bros. Discovery owed Netflix.

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© Agence France-Presse

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