Paramount makes acquisition of Warner Bros. Discovery official in a purchase valued at $110 billion

Warner Bros. Discovery reached an agreement Friday to be acquired by Paramount Skydance in a blockbuster deal valued at $110 billion, capping an intense bidding battle that took a decisive turn after Netflix decided Thursday not to pursue its competing bid for the company that owns HBO Max. The companies announced Friday that the deal assigns an equity valuation of $81 billion to the transaction and provides for closing in the third quarter of this year.

The acquisition financing iincludes $47 billion in equity commitments from the Ellison family and RedBird Capital Partners. The remainder will be backed by $54 billion in structured debt from Bank of America, Citigroup and Apollo. In addition, Paramount plans to launch a rights offering of up to $3.25 billion in Class B shares for existing shareholders. The companies project more than $6 billion in savings, driven by efficiencies from technology integration, operational optimization and reduced corporate expenses.

A media titan

Despite prevailing in the race, Paramount now faces regulatory scrutiny. California authorities are preparing a comprehensive review of the $110 billion deal, which could significantly transform the entertainment industry by allowing Larry Ellison's company to amass almost unprecedented media power.The California attorney general, Rob Bonta, confirmed Thursday that his office has already opened an investigation into the deal and promised a "rigorous" assessment. In contrast, European Union regulators are widely expected to approve the merger, with possible divestitures of a limited nature.

With this deal, Paramount is expected to control a broad portfolio of assets and film rights of enormous weight in the entertainment industry, becoming a true media titan and growing its empire. In terms of assets, the company would integrate under its structure networks and brands such as TNT, CBS, CNN, MTV, TCM, Showtime, Adult Swim, DC Studios, Paramount+, Nickelodeon, HBO/HBO Max, Comedy Central and Cartoon Network.

In the realm of film and franchise rights, the conglomerate would add such commercially valuable intellectual properties as Star Trek, Gremlins, Beetlejuice, the DC Comics universe, Tom &, Tom &, Tom &, Tom & and Tom & amp;.DC Comics, Tom & Jerry, Harry Potter, Citizen Kane, Transformers, A Quiet Place, Looney Tunes, The Conjuring, Mortal Kombat, Game of Thrones, Dora the Explorer, Mission Impossible, The Lord of the Rings, SpongeBob SquarePants, Avatar: The Last Airbender and Teenage Mutant Ninja Turtles.