"Paramount Skydance and Warner Bros. Discovery are officially merging. The studio paid Netflix the $2.8 billion termination fee it was owed for breaking its original deal to buy Warner Bros. earlier today, and the historic film studio has now formally accepted Paramount's offer."
"Along with the deal, which values Warner Bros. Discovery at $31 per share, Paramount is making several commitments to assuage the fears of regulators and the entertainment community. Those include a guarantee that the new company will produce 30 theatrical films annually, that theatrical releases will have a minimum 45-day window in theaters before they're brought to video on demand."
"Ultimately, Netflix and Paramount were vying for different parts of Warner Bros. Discovery. Netflix was primarily interested in Warner Bros. proper, while Paramount Skydance wanted the whole company, cable networks and all."
Netflix terminated its agreement to acquire Warner Bros. Discovery and paid a $2.8 billion termination fee. Paramount Skydance's offer for the entire company, valued at $31 per share, was deemed superior. Paramount committed to producing 30 theatrical films annually and maintaining a 45-day theatrical window before video-on-demand release. The deal is expected to close by Q3 2026. Netflix and Paramount pursued different acquisition strategies: Netflix focused on Warner Bros. proper, while Paramount sought the complete company including cable networks. Regulatory approval remains necessary, with potential scrutiny from federal and state authorities, though the Ellison family's Trump administration connections may facilitate approval.
#media-merger #streaming-industry #warner-bros-discovery #paramount-skydance #entertainment-consolidation
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