Warner Bros signs $110 billion deal with Paramount

Warner Bros Discovery has agreed to be acquired by Paramount Skydance in a $110 billion deal signed Friday morning, according to an audio clip of a global townhall by the company, which was reviewed by Reuters.

The agreement caps a bidding war after Netflix declined to match Paramount’s latest $31-per-share offer, which was deemed superior by Warner Bros to the streaming pioneer’s $27.75-per-share agreement for its studio and streaming assets.

Paramount shares jumped 24%, while Netflix rose 13% as investors welcomed its decision to back out of the Warner Bros race.

Paramount was in pursuit of Warner Bros since late last year when it launched a hostile campaign to wrestle the company from the streaming giant by consistently raising its offer.
The company, led by billionaire Larry Ellison’s son David Ellison, enticed Warner’s board back to the bargaining table by raising the possibility of an improved cash offer.

In its revised bid, Paramount raised the termination fee it would pay should the deal fail to gain regulatory approval to $7 billion from $5.8 billion. Paramount also agreed to pay the $2.8 billion termination fee that Warner Bros owes Netflix.

Reports are saying that the mood at CNN, which is owned by Warner Bros. Discovery, is “horrific” today.

For context, Paramount Skydance is owned by the Ellison family.

David Ellison is the CEO, and his father Larry Ellison is the financial foundation, providing more than $40 billion in equity and debt backing for the acquisition of Warner Bros. Discovery.

Larry is known to be politically conservative. He’s an ally of President Trump, and he’s a major republican donor, having donated tens of millions of dollars to GOP causes.

This has led to speculation regarding the influence that Paramount Skydance will have on CNN.

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