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Paramount Skydance Corporation has agreed to acquire Warner Bros. Discovery in a massive $110 billion deal that could reshape the global entertainment industry.

The companies announced they signed a definitive merger agreement, with Paramount paying $31.00 per share in cash for all outstanding WBD shares.

The boards of both companies unanimously approved the transaction. The deal is expected to close in the third quarter of 2026, pending regulatory approvals and a shareholder vote from WBD investors in early spring 2026.

According to Paramount, if the merger is not completed by September 30, 2026, WBD shareholders will receive a $0.25 per share quarterly "ticking fee" until closing.

The combined company will bring together major studios, streaming services, cable networks and sports rights under one roof.

Leaders say the goal is to expand consumer choice and strengthen creative opportunities worldwide.

David Ellison, Chairman and CEO of Paramount, said the merger has a clear purpose. "From the very beginning, our pursuit of Warner Bros. Discovery 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," Ellison said.

"By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders."

Zaslav Praises Paramount Deal as 'Historic'

David Zaslav, President and CEO of WBD, said the agreement delivers certainty and value.

"I'm very pleased with the outcome we achieved for WBD shareholders and the entertainment industry," Zaslav said. "We look forward to working with Paramount to complete this historic transaction."

The merger would unite streaming platforms Paramount+, HBO Max and Pluto, creating a stronger direct-to-consumer competitor in a crowded streaming market.

The combined company will also own a film library of more than 15,000 titles, including franchises like Game of Thrones, Harry Potter, Mission: Impossible, the DC Universe and SpongeBob SquarePants.

Both studios plan to continue releasing at least 15 theatrical films per year per studio. Each film will receive a full global theatrical release with a minimum 45-day window before moving to paid video-on-demand, preserving the traditional cinema model.

Financially, Paramount expects more than $6 billion in synergies through technology integration, streamlined operations and corporate efficiencies, Reuters reported.

The deal will be funded by $47 billion in equity backed by the Ellison Family and RedBird Capital Partners, along with $54 billion in debt commitments from major financial institutions.