Paramount on Friday signed a definitive agreement to acquire Warner Bros. Discovery in a transaction valued at more than $110 billion, the companies said.
Paramount’s bid followed Netflix’s withdrawal from the contest for the studio. If completed, the deal would bring HBO Max and the news outlet CNN into Paramount’s portfolio.
Under the terms, Paramount will pay $31 a share for Warner Bros. Discovery and has agreed to a $7 billion regulatory termination fee if the merger is blocked for regulatory reasons. Observers note Paramount’s close political ties to the Trump administration could shape federal review of the deal. California Attorney General Rob Bonta said the state has opened an investigation and will scrutinize the transaction closely.
Skydance acquired Paramount last year; the company is now run by CEO David Ellison, son of Oracle co-founder Larry Ellison, a billionaire who is politically aligned with President Donald Trump. That ownership background has sharpened scrutiny of how the combined company might influence news operations.
The merger would place CNN and CBS News under the same corporate umbrella. CBS News, restructured since the Skydance takeover, is led by Bari Weiss, a vocal critic of perceived liberal bias in mainstream media who has received praise from President Trump. Those connections have prompted questions about whether CNN’s editorial independence will be preserved. Media analyst Brian Stelter has written that employees and viewers are deeply concerned about Ellison’s commitment to upholding independent journalism at the network.
Paramount and Warner Bros. Discovery said they expect to realize more than $6 billion in annual savings from technology integration, corporate efficiencies and streamlined operations if the deal is completed.