Warner Bros. Discovery Signs Sale to Paramount Skydance as Larry Ellison Connection Draws Attention
Warner Bros. Discovery has formally signed an agreement to be acquired by Paramount Skydance, a move that follows Netflix’s abrupt exit from the bidding and elevates scrutiny of ties to larry ellison. The transaction, which values WBD at roughly $77 billion on a $31-per-share offer, will now face regulatory review and a shareholder vote expected in early spring of 2026.
Paramount Skydance Offer: $31 a Share and a $77 Billion Valuation
Paramount Skydance’s proposal of $31 a share places a market valuation for Warner Bros. Discovery near $77 billion and encompasses the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels that includes. Factoring in Warner Bros. Discovery’s debt, the takeover bid rises to more than $110 billion.
Netflix Withdrawal and the $2. 8 Billion Termination Fee
The agreement was finalized a day after Netflix abruptly withdrew from the bidding for WBD’s studio and streaming assets, ending a high-profile corporate contest. Netflix had not included cable assets in its proposal. Paramount Skydance paid Netflix a $2. 8 billion termination fee documented in a Securities and Exchange Commission filing, and Netflix’s co-CEOs Ted Sarandos and Greg Peters said the opportunity was a discretionary one — "a ‘nice to have’ at the right price, not a ‘must have’ at any price. "
Board Approval, Shareholder Vote and Timing Into 2026
The boards of directors of both companies approved the transaction unanimously. The deal remains subject to customary closing conditions, including regulatory clearances and approval by Warner Bros. Discovery shareholders, with a vote expected in the early spring of 2026. If the transaction has not closed by Sept. 30, Warner Bros. Discovery shareholders will receive a $0. 25-a-share ticking fee for each quarter that passes without closing.
Regulatory Risks, Congressional Scrutiny and a $7 Billion Reverse Termination Fee
Regulatory approval remains a major hurdle. Democrats in Congress have vowed to scrutinize the transaction, and Paramount Skydance’s proposal includes a $7 billion reverse termination fee if regulators block the deal. The regulatory process and political scrutiny create clear paths by which the transaction could be delayed, altered or unwound — outcomes that would trigger contractual protections and fees tied to the agreement.
Larry Ellison, David Ellison and the Skydance Background
Paramount Skydance is led by David Ellison, identified in the transaction materials as the son of Silicon Valley billionaire Larry Ellison, who is described as a close ally of President Donald Trump. The younger Ellison, age 43, pursued the Warner Bros. Discovery assets even after WBD previously struck a $72 billion deal with Netflix. Skydance Media, under David Ellison, acquired Paramount Global last year in an $8 billion transaction.
WBD Leadership Reaction and Uncertainty Over Integration
David Zaslav, president and chief executive of Warner Bros. Discovery, described himself as very pleased with the outcome achieved for shareholders and the industry, saying the guiding principle had been to maximize the value of the company’s assets and provide certainty for investors. He added that WBD looks forward to working with Paramount to complete the transaction. Paramount Skydance has not yet provided specifics on how its properties would be combined with those of WBD; it remains unclear in the provided context whether Ellison...
What makes this notable is the confluence of a decisive board vote, a high-priced termination payment to a competing bidder and the overlay of political and regulatory risk tied to ownership links — factors that will shape the path to closing as the companies move toward the shareholder vote and detailed antitrust review.
