Netflix Withdraws as Paramount Officially Acquires Warner Bros for Rp 1.7 Quadrillion
Paramount Global has officially announced an acquisition agreement valued at $111 billion (approximately Rp 1.7 quadrillion) for Warner Bros. Discovery.
The agreement was announced on Friday local time, one day after Netflix stated it was withdrawing from the bidding process because the price was deemed “no longer financially attractive”.
Under the agreement, Paramount will pay $31 per share for Warner Bros. Discovery (WBD). The agreement also includes a “ticking fee” scheme of $0.25 per share per quarter for shareholders, beginning after 30 September 2026.
This scheme will increase the transaction value if regulatory approval processes take longer.
The merger funding is supported by an equity commitment of $47 billion from the Ellison family and RedBird Capital, as well as debt financing of $54 billion from Bank of America, Citigroup, and Apollo.
Paramount has also opened the possibility of additional strategic and financial partners entering at transaction close.
The company is targeting completion of the deal in the third quarter of this year.
Previously, Netflix was one of the parties competing for Warner Bros. Discovery. However, the streaming company chose to withdraw from the negotiation process.
Netflix co-CEOs Ted Sarandos and Greg Peters stated that acquiring WBD was not an urgent necessity, but rather an additional opportunity if the price was appropriate. They stated that Paramount’s offer exceeded what they considered a fair financial limit.
Warner Bros. Discovery previously also had the obligation to pay a termination fee of $2.8 billion to Netflix to end their prior agreement.
Paramount stated that Paramount and Warner Bros. will continue to operate as independent studios. The company is committed to producing 15 films per year each, with an exclusive exhibition window of 45 days before entering premium video-on-demand services.
From a financial perspective, the company estimates potential synergies of up to $6 billion. These synergies derive from technology integration, streaming system consolidation, corporate efficiency, procurement savings, and property asset optimisation.
Despite targeting relatively swift deal closure, the agreement still faces regulatory scrutiny.
California Attorney General Rob Bonta stated that his office has opened an investigation and will conduct rigorous review.
The Hollywood industry also anticipates potential redundancies following deal completion, as part of efficiency and operational integration efforts.
If approved by regulators, the merger will form one of the world’s largest media conglomerates, marking a new chapter in global entertainment industry consolidation.