Paramount on Friday signed a formal agreement to acquire Warner Bros. Discovery, in a deal valued at more than $110 billion (€93 billion), the companies said.
Paramount’s offer follows Netflix’s exit from the bidding for the storied studio. The acquisition will transfer ownership of HBO Max and major news broadcaster CNN to Paramount.
Under the agreement, Paramount will pay $31 a share for Warner Bros. Discovery and has agreed to a $7 billion regulatory termination fee if the transaction is blocked on regulatory grounds. Paramount has close political ties to the Trump administration, which could influence federal approval, while California Attorney General Rob Bonta said the state is already investigating the deal and will review it vigorously.
Paramount, which owns CBS and MTV, was sold last year to media company Skydance. Paramount Skydance is led by CEO David Ellison, the 43‑year‑old son of Larry Ellison, one of the world’s wealthiest people and a close ally of President Donald Trump.
The merger places CNN and CBS News under the same corporate roof. CBS News, reshaped since Skydance’s takeover, is led by Bari Weiss, who has criticized mainstream media for liberal bias and drawn praise from Donald Trump. That, plus Ellison’s political connections, has raised questions about whether editorial independence at CNN will be preserved. CNN media analyst Brian Stelter wrote that employees and viewers have serious concerns about whether Ellison will uphold the network’s editorial independence.
Paramount and Warner Bros. Discovery said they expect more than $6 billion in savings from technology integration, corporate efficiencies and streamlined operations.
Edited by: Wesley Dockery