Paramount Skydance to Acquire Warner Bros. Discovery for $31.00 Per Share

Paramount Skydance Corporation (PSKY) announced it has entered into a definitive merger agreement to acquire Warner Bros. Discovery, Inc. (WBD) in an all-cash transaction. Upon completion of the merger, WBD will operate as a wholly owned subsidiary of PSKY. The boards of directors for both companies have unanimously approved the agreement.

Key Details

• Merger Consideration: WBD shareholders will receive $31.00 in cash for each share of common stock. An additional daily 'ticking consideration' will be paid if the closing occurs after September 30, 2026.
• Financing & Related Costs: The transaction is supported by over $46.9 billion in equity commitments, primarily from The Lawrence J. Ellison Revocable Trust and RedBird Capital, alongside a $54 billion debt commitment letter. To facilitate the deal, PSKY has paid the $2.8 billion termination fee owed by WBD to Netflix, Inc. from a prior, terminated merger agreement.
• Termination Fees: The agreement includes a $7.0 billion regulatory termination fee payable by PSKY to WBD and a $3.0 billion termination fee payable by WBD to PSKY under certain specified conditions.