Warner Bros. agrees to be acquired by Paramount for $110 billion, with the latter paying Netflix a $2.8 billion termination fee.

IT Home reports on February 28. On February 27 local time, Warner Bros. Discovery and Paramount Global Tianwu signed an agreement valued at $110 billion (IT Home note: at the current exchange rate, approximately RMB 755.7 billion), under which they agreed for the latter to acquire the former. It is understood that the deal includes about $29 billion (at the current exchange rate, approximately RMB 1992.48 billion) in debt, making it one of the largest M&A deals in Hollywood in recent years.

Warner Bros. Discovery disclosed on February 24, 2026 that the core terms of Paramount’s proposal include:

Acquiring Warner Bros. Discovery stock at a cash price of $31 per share;

After September 30, 2026, paying a funding delay compensation of $0.25 per quarter per share;

If the transaction cannot be completed due to regulatory-related matters, Paramount Global Tianwu will pay a $7 billion regulatory termination fee;

A $2.8 billion termination fee that Warner Bros. Discovery is required to pay to terminate its existing merger agreement with Netflix will be assumed by Paramount;

Larry J. Ellison and related trusts have committed to provide additional equity financing as needed, in accordance with the requirements of Paramount Global Tianwu loan banks’ proof of solvency;

At the same time, within the definition of “material adverse effect,” it excludes circumstances related to the operating performance of the global linear networks business segment of Warner Bros. Discovery.

IT Home notes that the board of Warner Bros. Discovery has issued a notice to Netflix, concluding that Paramount’s latest offer constitutes a “superior proposal” under the existing merger agreement. In response to this change, Netflix has clearly stated that it refuses to increase its bid and has completely abandoned the plan to bring Warner Bros. Discovery Studios’ revenues under its control.