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Paramount acquires Warner Bros Discovery for $31 per share, reshaping the streaming landscape and industry dynamics.
Warner Bros Discovery has agreed to a blockbuster merger with Paramount Skydance, marking one of the biggest shake-ups in the entertainment industry in years. Under the terms of the agreement, Paramount plans to pay "$31.00 per share in cash for all outstanding shares of WBD," according to a news release. According to the release, the board of directors of both companies approved the deal unanimously. The announcement came after a months-long bidding war in which Paramount emerged as the victor in the fight to acquire the storied Warner Bros. Netflix, who backed away from the deal Thursday, had hoped to win the movie studio and its vast film library.
"We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive," Netflix said in a statement. "This transaction was always a 'nice to have' at the right price, not a 'must have' at any price." Prescott said Warner Bros. has been a significant economic driver for the city and expressed hope that a merger would not change that role. "Besides the jobs ... they feed into our hospitality, hotels, restaurants, retail, and all the supplies they need to do production and all the businesses here are peripheral to them and support them," he said.
Paramount wants it all: Movies, cable networks and news. Dominic Patten, senior editor at Deadline, said the bidding reflected an aggressive approach driven by Paramount's leadership. "The main thing I think to take away from this is the sheer force Ellison brought to this, which was very much that Silicon Valley attitude of just go fast and break things, get what you want and at whatever price you have to," Patten said. Industry analysts say the merger could also reshape the streaming landscape, with the potential to combine HBO Max and Paramount+ in an effort to better compete with video streaming giant Netflix.
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