The American media holding company Paramount Skydance Corp. I intend to combine the Paramount+ and HBO Max streaming services into a single platform as part of the acquisition of Warner Bros. Discovery Inc. for $110 billion, including debt obligations. This was reported in a Paramount press release.
The transaction is expected to be completed in the third quarter of 2026. subject to the usual closing conditions, including regulatory approvals and approval by WBD shareholders at a meeting in spring 2026. If the transaction is not closed before September 30, 2026, WBD shareholders will receive a "ticking fee". in the form of an additional quarterly remuneration of $650 million.
Paramount won the bidding from competitor Netflix Inc., agreeing to pay $31 per share. In addition, Paramount Skydance Corp. Netflix Inc. has paid a $2.8 billion penalty for terminating the agreement after Netflix refused to continue bidding for the acquisition of Warner Bros. studios. and the streaming business of HBO Max.
Paramount has no plans to cut production, and the deal is aimed "at supporting competition, consumers, and the creative community." At the same time, Paramount plans to release 15 films per year for each studio, or at least 30 films per year in total.
Paramount management expects that in 2026 the revenue of both companies will amount to $69 billion, with net debt obligations of both companies amounting to $79 billion. Paramount plans to raise $54 billion from Bank of America, Citigroup and Apollo Global Management Inc.
Paramount+ and HBO Max streaming platforms have more than 200 million D2C subscribers in 100 countries, allowing them to effectively compete with the leading streaming services in today's market.
The combined company will receive the rights to the sports events of the National Football League, the Ultimate Fighting Championship, March Madness, the PGA Tour and the Olympic Games in Europe. Paramount's $7.7 billion deal with the UFC, concluded in 2025, gives the company the opportunity to broadcast events on TNT.
The merger of Paramount and Warner Bros. has strategic and financial advantages, including supporting competitiveness by combining Paramount+, HBO Max and Pluto, a wide portfolio of intellectual property and content assets (a film library of more than 15,000 titles and thousands of hours of television programs).
Moelis &Company LLC is acting as financial advisor to Netflix, while Allen&Company, J. P. Morgan and Evercore are consultants to Warner Bros. Discovery. At the same time, BNP Paribas and HSBC Holdings provide mandatory debt financing under the deal, and Wells Fargo intends to provide a loan of $59 billion.
Warner Bros. Discovery, Inc. is an American multinational media and entertainment conglomerate headquartered in New York City (USA). The company was formed as part of WarnerMedia's divestment from AT&T and merger with Discovery Inc. in 2022. The company owns HBO, CNN, and Warner Bros. studios. for the production of films and TV programs. Debt obligations amount to $33.5 billion.
Paramount Skydance Corp. — an American multinational company and entertainment conglomerate. The company is headquartered in Los Angeles, California. The company includes four divisions — Paramount Skydance Studios, Paramount Streaming, Paramount Skydance TV Media and Paramount Sports Entertainment.
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