Paramount Skydance and Warner Bros. Discovery agreed to a major merger valued at about $110 billion in enterprise value. Under the deal, Paramount will acquire Warner Bros. Discovery for $31 in cash per share.
The companies initially expected the transaction to close in the third quarter of 2026. However, legal challenges have delayed the deal. The companies have agreed not to complete the merger until five days after a court ruling or June 1, 2027, whichever comes first.
Quick Facts: Paramount WBD Merger
| Deal | Paramount Skydance acquisition of Warner Bros. Discovery |
|---|---|
| Announcement | February 27, 2026 |
| Purchase Price | $31 in cash per WBD share |
| Enterprise Value | About $110 billion |
| Expected Synergies | More than $6 billion |
| Current Status | Merger remains pending amid legal proceedings |
| Key Issue | Antitrust lawsuits challenging the transaction |
| Next Major Step | Federal court proceedings scheduled for March 2027 |
Paramount and WBD Agree on Major Deal
Paramount Skydance and Warner Bros. Discovery signed a definitive merger agreement on February 27, 2026. Both boards approved the transaction.
Paramount agreed to pay $31 in cash for each outstanding WBD share. The deal values WBD at about $81 billion in equity value and approximately $110 billion in enterprise value.
Paramount also expects the combination to generate more than $6 billion in synergies. The company says those savings could come from technology integration, procurement, real estate and other operating efficiencies.
Legal Challenges Delay the Merger
The deal now faces a longer timeline.
In July 2026, 12 US states filed an antitrust lawsuit against Paramount and WBD. The Writers Guild of America also filed a separate lawsuit seeking to block the transaction.
A federal court later approved an agreement preventing the companies from closing the merger or integrating their operations until five days after a court ruling or June 1, 2027.
A 12 day trial covering the state and Writers Guild cases is scheduled to begin on March 2, 2027, according to Paramount’s filing.
What the Combined Company Could Offer
Paramount and WBD say the merger would bring major film, television, streaming and sports properties under one corporate structure.
The companies have highlighted franchises and brands such as Harry Potter, Game of Thrones, Mission: Impossible, Top Gun, DC and SpongeBob SquarePants.
The proposed combination would also bring Paramount+ and Pluto together with HBO Max and other WBD businesses.
Paramount plans to fund the transaction through new equity and debt commitments.
The original agreement included about $47 billion in equity funding and $54 billion in debt commitments. Paramount also planned a possible rights offering of up to $3.25 billion for existing Class B shareholders.
The merger agreement includes a ticking payment for WBD shareholders if the transaction remains incomplete after September 30, 2026. The payment can reach $0.25 per share for each 90 day period.
