Paramount Skydance emerged victorious from a bidding war with Netflix over the acquisition of Warner Bros. Discovery (WBD) in February, buying the historic studio for $31 per outstanding share in a transaction valued at $110 billion. The transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in Q3 2026, subject to approval by regulators and WBD shareholders, with a vote expected in the early spring of 2026. In the event the deal isn’t sealed by September 30 of this year, WBD shareholders will receive a $0.25 per share “ticking fee” for each quarter (measured daily) until closing.
Netflix had previously been leading the race to acquire WBD’s motion picture and streaming businesses since December, having entered an agreement to purchase the legacy studio in a deal that sent shockwaves across the global entertainment industry. After initially suggesting theatrical windows would need to “evolve in order to be more consumer-friendly,” Sarandos later reversed course and promised all Warner Bros. titles under Netflix would receive a 45-day exclusivity window as part of a separate theatrical division within the streamer. Ultimately, it wasn’t Netflix’s stance on windows that led to the collapse of their Warner Bros. deal, but Paramount Skydance’s wallet that forced the issue. Netflix walks away from the failed acquisition with a $2.8 billion penalty paid by WBD for abandoning their original agreement.
Paramount Skydance will take on significant debt to acquire the entirety of Warner Bros. Discovery, including the media giant’s linear television properties. The combined Paramount-Warner Bros. is committing to 30 theatrical releases annually, 15 feature films per year per studio. These films will receive a full theatrical release with a minimum 45-day global exclusivity window before becoming available on Paid Video-on-Demand (PVOD), with the intention of giving its most successful titles a 60-to-90-day exclusive run in theaters.
Paramount will continue to adhere to specific windowing policies in the markets it operates in, including France, where Paramount maintains its windowing commitments under the country’s chronologie des médias.
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