Skydance-owned Paramount has closed its takeover of Warner Bros. Discovery after a fight that lasted roughly a year. According to the Associated Press, the deal is worth about $81 billion in equity and nearly $111 billion including debt. It is the largest merger in Hollywood history and concentrates more power among a handful of major studios.

How the Gambit Played Out

  • December 2025: Warner first struck a studio and streaming deal with Netflix, valued at $27.75 per share.
  • The hostile bid: days later, Paramount went straight to Warner shareholders with an all-cash $30-a-share offer. CEO David Ellison argued it offered more value and a faster path to closing.
  • Sweeteners: Paramount added a ticking fee for shareholders if the deal dragged on and offered to cover the $2.8 billion breakup fee owed to Netflix. It later pledged $7 million for every day past October 1 that the deal stayed open.
  • February 2026: Paramount raised its bid to $31 per share, Netflix bowed out, and the two companies signed a merger agreement by late February.

The Obstacles Paramount Cleared

  • Antitrust review: the Justice Department and regulators worldwide cleared the deal over the summer.
  • State lawsuit: 12 Democratic state attorneys general sued to block it, with trial set for March 2027. Paramount settled with the states on September 21, and Judge Araceli Martinez-Olguin entered a consent decree on September 30. The decree includes backstops requiring divestiture of studios and cable channels if the company fails to comply.
  • Funding: the FCC approved a large foreign cash infusion on September 18, and AP reports three Gulf countries helped back the deal.
  • Last-minute challenge: Paramount subscribers filed a long-shot emergency request with the Supreme Court. It did not stop the closing.

The Debt and Opposition

The combined company will carry up to $87 billion in debt, according to NPR. Earlier analyst estimates put net debt near $79 billion, with Bernstein saying leverage could reach 6x EBITDA. Management has promised about $6 billion in annual savings. In April, thousands of actors, writers and directors announced "unequivocal opposition" to the merger.

What Comes Next

Ellison has announced the senior executives who will run the combined company. Paramount streaming chief Cindy Holland is leaving, and HBO's Casey Bloys is expected to take over streaming. The plan is to combine Paramount+ with HBO Max, while CBS and CNN sit under one roof.

Key Takeaways

  • Paramount won at $31 a share by going over the board's head to shareholders and sweetening its terms.
  • The deal closed on October 6 at about $111 billion including debt.
  • Heavy debt and the integration of two big streaming services are the main tests ahead.