Warner Bros. agrees to be acquired by Paramount in $110 billion deal, reports say

Two of Hollywood’s oldest studios are consolidating into one after Warner Bros. Discovery on Friday agreed to be acquired by Paramount Skydance in a deal worth $110 billion.

The news was first reported by Reuters and Deadline, citing remarks by a top Warner Bros. executive.

Bruce Campbell, Warner Bros.’ chief revenue and strategy officer, made the announcement at a morning town hall, according to Reuters.

The announcement came after a monthslong bidding war in which Paramount emerged as the victor in the fight to acquire the storied Warner Bros. Netflix, who backed away from the deal Thursday, had hoped to win the movie studio and its vast film library.

“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” Netflix said in a statement. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Paramount wants it all: Movies, cable networks and news. Dominic Patten, senior editor at Deadline, said the bidding reflected an aggressive approach driven by Paramount’s leadership.

“The main thing I think to take away from this is the sheer force Ellison brought to this, which was very much that Silicon Valley attitude of just go fast and break things, get what you want and at whatever price you have to,” Patten said.

The proposed merger will require approval from the U.S. Department of Justice and is already under review in California. Attorney General Rob Bonta said the state is closely examining the deal.

“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny – the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” Bonta said.

Almost 10 years ago, Hollywood’s big six became the big five when Disney bought most of 20th Century Fox. Now the big five looks like it’s destined to become the big four, including Universal and Sony, and the business of Hollywood moviemaking is one again in a time of profound transition.

The Associated Press contributed to this report.