Paramount Completes Historic $111 Billion Acquisition of Warner Bros. Discovery

Image: TechCrunch · Source

Paramount, backed by Larry Ellison, finalized its $111 billion acquisition of Warner Bros. Discovery after a fierce bidding war and regulatory hurdles, promising a major reshaping of Hollywood and the streaming landscape.

In a landmark deal that is set to dramatically reshape Hollywood and the streaming industry, Paramount has officially completed its acquisition of Warner Bros. Discovery (WBD) for $111 billion. This deal, finalized on October 6, 2026, followed months of intense competition, regulatory scrutiny, and legal challenges that captivated the media and entertainment sectors.

Warner Bros. Discovery, burdened by billions in debt and facing declining cable viewership alongside stiff streaming competition, began exploring strategic alternatives in late 2025. Multiple potential buyers expressed interest, with Netflix initially emerging as a frontrunner. Netflix offered $82.7 billion to acquire WBD’s studios, streaming services, and television assets.

However, Paramount, led by David Ellison and financially supported by his father Larry Ellison—the Oracle chairman and one of the wealthiest individuals globally—countered with a more comprehensive $111 billion bid encompassing all WBD’s assets, including studios, HBO, streaming platforms, gaming, and TV networks such as CNN and HGTV. After a protracted bidding process, Paramount’s all-encompassing offer prevailed.

The deal faced significant regulatory scrutiny. The U.S. Department of Justice approved it in June 2026, but a coalition of 12 state attorneys general filed a lawsuit alleging it would diminish competition, hurt theaters and viewers, and lead to industry consolidation. A brief judicial pause ensued, but a federal judge ultimately cleared the acquisition in late September.

Financially, Paramount assumed WBD’s roughly $33 billion debt in addition to its own liabilities, supported by a $54 billion debt financing package from major financial institutions and $45.7 billion in equity from Larry Ellison. The combined company, now renamed Skydance, is projected to generate nearly $70 billion in annual revenue.

The merger consolidates major streaming platforms—Paramount+, HBO Max, and Discovery+—which plans call for eventual integration under the new banner. However, concerns remain about potential layoffs and editorial direction under Ellison’s ownership, given his controversial political affiliations and prior impacts on news content at CBS News.

Nevertheless, this monumental acquisition signals a new era for one of Hollywood’s largest media empires, reshaping content production and streaming distribution amid a rapidly evolving landscape.