Paramount Skydance has agreed to acquire Warner Bros Discovery in a $110 billion deal, ending a bidding war after Netflix declined to match Paramount’s $31-per-share offer. The transaction, valued at $81 billion in equity, is expected to close in the third quarter of 2026, pending shareholder and regulatory approval.

The merger will create one of the largest media companies in the world, combining major studios and networks and assembling a film library of more than 15,000 titles. The combined company will include franchises such as Game of Thrones, Mission Impossible, Harry Potter, Fantastic Beasts, The Matrix, and the DC Universe, and has pledged to maintain both studios while producing at least 30 theatrical films annually.

The acquisition will be financed through $47 billion in equity from the Ellison family and RedBird Capital Partners, along with $54 billion in debt commitments from major banks. Paramount also agreed to pay a $2.80 billion termination fee owed to Netflix and increased its own breakup fee to $7 billion to strengthen the offer.

The deal is expected to face regulatory scrutiny in California, where the state attorney general has pledged a vigorous review. Lawmakers, cinema operators, and the Writers Guild of America have raised concerns about reduced competition, potential job losses, and higher prices for consumers, though European Union antitrust approval is expected to be less contentious.