It would appear that Paramount has officially beaten Netflix in the bidding war for Warner Bros. Discovery. 

Netflix had announced in December that it had agreed a merger with WBD, entering the pro wrestling news cycle as the media partner for WWE banded with the media partner and minority owner for AEW. But it was announced on Thursday that it would be withdrawing its offer after Paramount had submitted what WBD deemed a superior proposal. 

Paramount announced in a press release on Friday that it and Warner Bros. Discovery had entered into a “definitive merger agreement under which Paramount will acquire WBD, forming a premier global media and entertainment company focused on expanding consumer choice and empowering creative talent worldwide.” 

Under the agreement’s terms, Paramount will pay $31 per share in cash for all outstanding shares of WBD, with the transaction unanimously approved by both company’s Boards, and expected to close in Q3 2026 – subject to regulatory clearances and approval by WBD shareholders. A shareholder vote is expected in the early spring of 2026. If accepted, WBD shareholders are pledged to receive a $0.25 per share ticking fee for each quarter, measured daily until closing. 

David Ellison, Chairman and CEO of Paramount, is quoted in the release: “From the very beginning, our pursuit of [WBD] 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.”

“I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry,” said David Zaslav, President and CEO of WBD. “Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors.”

The completed transaction will see Paramount acquire 100% of WBD, valuing it at $81 billion in equity value and $110 billion in enterprise value. Paramount expects $6 billion in synergies – merging departments and infrastructure – and the transaction is funded by $47 billion in equity fully backed by the Ellison family and Redbird Capital Partners, and $54 billion of debt commitments from Bank of America, Citigroup, and Apollo.