Paramount Skydance finalized its acquisition of Warner Bros. Discovery on Friday morning in a deal valued at $110 billion.
Deal Signed
According to Reuters, citing an internal meeting recording, Campbell, the company’s strategy chief, announced the agreement was signed early Friday morning.
Paramount Skydance signed the deal after Netflix had the right to match the offer but ultimately did not. A company representative confirmed the agreement was signed with PSKY early Friday.
Financial Details
The specifics of the deal are not yet fully known. Reuters reports the transaction is valued at $110 billion. WBD’s management had previously stated that Paramount’s offer included $31 per share, plus an additional 25 cents per quarter for any delay beyond September, totaling $2.8 billion to cover Netflix’s termination fee and $7 billion if regulatory approval is blocked.
Funding Sources
The acquisition is to be financed by Larry Ellison, Oracle’s owner and father of Paramount CEO David Ellison, along with funds from Saudi Arabia and the United Arab Emirates.
Political Context
The takeover of WBD, which includes channels like CNN and Poland’s TVN, by Ellison-aligned entities follows months of competition with Netflix. Some Republican politicians and indirectly Trump opposed the Netflix deal, with Trump recently demanding Netflix fire former Obama advisor Susan Rice and calling for CNN’s ownership change.
Concerns at CNN and CBS News
Netflix, which had the right to submit a new offer, declined, citing financial unsuitability and lack of necessity. CEO Ted Sarandos visited the White House on Thursday before withdrawing. Employees and journalists at CNN and CBS News fear the merger may lead to mass layoffs, with Paramount leadership discussing a potential merger of the two channels.
