HBO Max and Paramount+ to unite after $110B acquisition of WBD
Paramount Skydance CEO David Ellison announced Monday that the company will merge Paramount+ and HBO Max into a single streaming platform following the completion of its $110 billion acquisition of Warner Bros. Discovery (WBD).
The combined service is projected to reach more than 200 million direct-to-consumer subscribers, positioning it to compete with market leaders Netflix and Disney+. Ellison stated the move would unify the companies’ technical stacks and library of intellectual property, including franchises such as “Star Trek,” “Harry Potter,” “Yellowstone,” and “Game of Thrones.” A specific name for the integrated service has not yet been disclosed.
Paramount secured the deal for WBD after Netflix withdrew its competing bid on Feb. 27. The all-cash transaction values WBD at $31 per share and includes the assumption of approximately $33 billion in debt. Paramount has already paid a $2.8 billion termination fee to WBD to cover the breakup cost of the previous Netflix agreement.
During an investor call, Ellison committed to maintaining the creative independence of HBO, stating, “HBO should stay HBO.” He also pledged a robust theatrical strategy, promising at least 30 annual film releases across both studios. The company targets more than $6 billion in cost synergies, which Ellison indicated would primarily originate from non-labor sources such as real estate and marketing efficiencies.
The merger faces regulatory scrutiny from the U.S. Department of Justice and California Attorney General Rob Bonta, who launched an investigation into the deal last week. Critics, including Senator Elizabeth Warren, have raised concerns regarding media concentration and potential editorial interference at news divisions CBS and CNN due to the Ellison family’s political ties.
Warner Bros. Discovery is a global media conglomerate formed by the 2022 merger of WarnerMedia and Discovery Inc. Paramount Skydance is a next-generation media firm led by Ellison and backed by RedBird Capital Partners and the Ellison family. The transaction is expected to close in the third quarter of 2026, pending shareholder and regulatory approval.