NEW YORK, February 28, 2026 — Warner Bros. Discovery and Paramount Global have signed a definitive agreement to merge in an all-stock transaction, creating a combined media and entertainment company valued at approximately $70 billion, according to people familiar with the deal.
The merger, announced late Thursday, will see Warner Bros. Discovery shareholders receive 0.85 shares of the new entity for each share owned, while Paramount shareholders will receive 1 share of the combined company for each Paramount share.
The transaction values Paramount at roughly $28 billion, including debt, and gives Warner Bros. Discovery shareholders a majority stake in the new company.
The combined entity will operate under a new name yet to be determined and will be led by Warner Bros. Discovery CEO David Zaslav as chief executive. Paramount CEO Bob Bakish will depart following the close of the deal, expected in the second half of 2026 pending regulatory approval and shareholder votes.
The merger brings together Warner Bros. Discovery’s HBO Max, Warner Bros. Pictures, Turner networks, and Discovery channels with Paramount’s CBS, Paramount Pictures, Nickelodeon, Showtime, and Paramount+ streaming service. The companies expect to achieve $3 billion in annual cost synergies through consolidation of overlapping operations, content licensing, and back-office functions.
Zaslav stated: “This combination creates a stronger, more competitive company with greater scale, enhanced content creation capabilities, and improved financial flexibility to invest in storytelling and innovation across all platforms.”
The deal follows months of negotiations and comes amid intense pressure on traditional media companies facing declining linear TV audiences, rising streaming costs, and competition from tech giants. Both companies have struggled with debt loads and profitability challenges in recent years.
Regulatory approval is expected to be a key hurdle, as the combined entity would control a significant share of U.S. television and film content. The Justice Department and Federal Communications Commission will review the transaction for antitrust and public interest implications.
Paramount shares rose more than 10% in after-hours trading following the announcement, while Warner Bros. Discovery shares dipped slightly.
