Paramount bets on scale with $110bn Warner deal

Transaction follows Skydance's controversial Paramount takeover, marking the latest in streaming battle.

Paramount has sought EU antitrust approval for its proposed acquisition of Warner Bros Discovery, advancing a deal that would create one of the world's largest media and entertainment companies as legacy media companies race to compete in the streaming era.

The filing marks the latest step in a $110 billion transaction that would combine a vast portfolio of television networks, film studios and streaming platforms including HBO, CNN, CBS, and Paramount+, among others, under a single corporate umbrella.

The proposed acquisition comes less than two years after David Ellison’s Skydance Media completed its own takeover of Paramount Global, a transaction that followed months of scrutiny from investors and minority shareholders.

The deal was pitched as a turnaround strategy for a company struggling with declining linear television revenues, mounting streaming losses, and a heavily indebted balance sheet.

Critics questioned the governance structure and whether the terms adequately protected minority shareholders, turning the process into one of the most closely watched media transactions of the decade.

The Warner transaction represents a significant escalation of Skydance’s strategy. Rather than focusing solely on stabilizing Paramount's operations, management is now pursuing transformational scale through consolidation.

This reflects a growing belief across the media industry that standalone players may struggle to compete against technology-driven rivals with global reach and vast content budgets.

Pressure is building to for legacy players to combat rising content production costs and increased competition for subscribers and advertising revenue as consumers shift to streaming services.

Balance-sheet pressures have also played a role in driving consolidation. Warner Bros Discovery emerged from the 2022 merger of WarnerMedia and Discovery with more than $45 billion in net debt and, despite returning to profitability in 2025, still carried approximately $29 billion of net debt at year-end. The combined company would hold around $79 billion in net debt.

For both parties, the deal offers the potential to create a more formidable competitor with a larger content library, broader distribution capabilities and greater negotiating power with advertisers and distributors.

Industry observers expect the companies to pursue significant cost savings and operational efficiencies by combining overlapping functions and leveraging their extensive entertainment assets across multiple platforms.

However, investors will also be weighing the risks.

Large-scale media mergers have historically produced mixed results, with integration challenges, cultural differences, and debt burdens sometimes offsetting anticipated synergies.

Investors may also question the valuation being paid. Netflix previously explored a bid for Warner Bros Discovery valued at approximately $83 billion before withdrawing from the process, concluding that the economics were no longer attractive at higher valuations. The gap between that proposal and the $110 billion Paramount transaction is likely to fuel debate over whether anticipated synergies can justify the premium.

Regulators in multiple jurisdictions are also expected to scrutinize the transaction given the size and influence of the combined business.

If approved, the transaction could reshape the competitive landscape for years to come, creating a media giant with the scale to challenge streaming leaders while testing investors’ long-held belief that consolidation is the best path to restoring growth and shareholder returns in the investment sector.

The European Commission is expected to announce a decision by July ​7.

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