Hollywood’s consolidation wave just delivered its biggest twist yet: Paramount Skydance has agreed to acquire Warner Bros Discovery in a $110 billion deal expected to close in the third quarter of 2026.

The agreement ends a heated bidding war after Netflix declined to match Paramount’s $31-per-share offer, which topped the streamer’s earlier $27.75 proposal for the company’s studio and streaming assets according to Reuters.

If approved by shareholders this spring and regulators thereafter, the merger would combine major brands including CNN and CBS and create a library of more than 15,000 titles spanning franchises like Game of Thrones, Mission: Impossible, and Harry Potter.

The companies say the combined entity will release at least 30 theatrical films annually and expects over $6 billion in savings through integration and streamlined operations.

The transaction, funded by equity from the Ellison family and RedBird Capital Partners alongside tens of billions in debt commitments, is already drawing scrutiny.

California Attorney General Rob Bonta said the state will be “vigorous” in its review, while the Writers Guild of America warned, “The loss of competition would be a disaster for writers, consumers and the entire entertainment industry. This merger must be blocked.”

Paramount also paid a $2.8 billion termination fee tied to Warner’s previous agreement with Netflix. As one analyst put it, “Netflix is the biggest winner in the Warner Bros Discovery sweepstakes. Netflix earns a termination fee paid by Paramount. By driving a bidding war, Netflix raised the price Paramount had to pay, which will ultimately burden Paramount-WBD with more debt.”

One unusual line buried in the disclosures reads: “Sometimes we’re finding that a key tea supplier is just not able to provide the volumes that they did the previous year.”