Paramount Skydance will acquire Warner Bros. Discovery in a landmark deal valued at approximately $108 billion. The board of Warner Bros. Discovery accepted an all-cash offer of $31 per share. Netflix withdrew from the bidding process after declining to match the offer, stating the price was no longer financially attractive.
The acquisition grants Paramount Skydance control over HBO, CNN, and the Warner Bros. film and television studios. Paramount Skydance will cover the $2.8 billion termination fee Warner Bros. owes to Netflix. The agreement also includes a $7 billion fee if the deal fails to secure regulatory approval.
Paramount Skydance shares climbed in after-hours trading following the announcement. Netflix stock also saw a significant increase as investors reacted to the company's financial discipline in the bidding process.