Flashspoter - The consolidation of The Hollywood entertainment industry entered a new round. Paramount Skydance acquires Warner Bros. Discovery in a deal worth US$111 billion or around Rp1, 800 trillion, beating Netflix's offer which first submitted an offer.
This historic deal was marked by the payment of a cancellation fee of US$2.8 billion (around Rp45 trillion) from Paramount to Netflix, after the streaming giant decided not to raise the offer. The value of the acquisition puts the stock price of Warner Bros. Discovery at US$31 per sheet.
The acquisition process, which has been ongoing since December 2025, presents fierce competition between two different business models. Netflix, known as the pioneer of streaming, is solely eyeing the Warner Bros. film studio. While Paramount Skydance wanted full ownership including the cable network attached to Warner Bros. Discovery.
From the financial side, the debt burden is a crucial consideration. Paramount Skydance is expected to assume $ 90 billion in debt after the acquisition. By comparison, if Netflix had won the bid, the Ted Sarandos-led company would not have been burdened with significant additional debt.
To assuage the concerns of regulators and the film community, Paramount provided three key guarantees. First, the new company will produce 30 feature films annually. Secondly, only releasing the movies in theaters (theatrical window) for at least 45 days before the film is laid out on a platform on demand. Thirdly, the integration process is scheduled to be finished in the 3rd quarter of 2026.
This pledge is an answer to the concerns of the industry stakeholders who feared that the acquisition might destroy the old cinema business. Netflix had previously made similar commitments when it made the offer, including promises to maintain a 45-day cinema window and give HBO autonomy.
David Zaslav, CEO Warner Bros. Discovery, being the most beneficial party personally. His stock and equity holdings in the company were valued at approximately US$790.5 million post-agreement. In a virtual meeting with employees, Zaslav admitted the pace of the acquisition process felt "like a lash" but asked employees to take a weekend off to digest the changes.
Paramount is still facing major housework. CEO David Ellison estimated a$6 billion cost efficiency from the two companies' synergies, which in practice would mean job cuts across overlapping departments.
The personnel situation is also a potential oddity. Warner fired the film's head of marketing Josh Goldstine a year ago, but Paramount instead hired him last October. In contrast, Mike Ireland, whom Ellison dismissed from Paramount in August, was hired by Warner as president of production a week before the acquisition was announced.
While David Ellison and his father Larry Ellison's close ties to the Trump administration are expected to smooth the approval process, scrutiny is still coming from state and international regulators. California Attorney General Robert Bonta has said he will look into the deal.
Paramount is also bound by financial commitments: if the deal fails for regulatory reasons, the company is obliged to pay US$7 billion to Warner Bros. Discovery. Late completion beyond the third quarter of 2026 will also cost Paramount a daily fee of US$0.25 per share per quarter.
Sources:
The New York Times - "The inside story of how Paramount won Warner Bros." (February 28, 2026)
Engadget - "Paramount agrees to buy Warner Bros. Discovery, pays Netflix $2.8 billion breakup fee" (February 28, 2026)
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