Paramount Acquires Warner Bros. Discovery: What to Know About the Landmark Media Deal
Paramount is set to acquire all Warner Bros. Discovery assets for $111 billion, but the deal has been paused after a lawsuit by 12 state attorneys general. It faces challenges over antitrust, debt, and political concerns.
The streaming and entertainment industry witnessed one of its biggest megadeals this year as Paramount outbid Netflix for Warner Bros. Discovery (WBD). It started in October 2025 when WBD said it was exploring a sale after receiving unsolicited interest. Netflix initially offered $82.7 billion for WBD's film, TV, and streaming assets, but Paramount countered with a $111 billion bid for all assets, including HBO, CNN, HGTV, and games. Netflix declined to raise its offer and withdrew in late February.
Paramount's bid is led by David Ellison and backed by his father, Oracle chairman Larry Ellison, one of the world's richest people. The deal assumes Paramount's existing debt plus WBD's $33 billion in debt, totaling $87 billion. Financing comes from a $54 billion loan commitment from Bank of America, Merrill Lynch, Citi, and Apollo Global Management, along with $45.7 billion in equity from Ellison.
After the U.S. Department of Justice approved the deal in June, a coalition of 12 state attorneys general filed a lawsuit on July 13 to block it, arguing it would lessen competition, harm movie theaters, cable distributors, and viewers. California AG Rob Bonta leads the coalition. U.S. District Judge Araceli Martínez-Olguín imposed a 14-day pause, with a hearing set for August 3 to decide on an extension. Concerns also include potential job cuts, with Ellison warning of significant reductions, and political influence, as Ellison has ties to Donald Trump and has sought to curb CNN's independence.
