Paramount Skydance to buy Warner Bros. Discovery for $110 billion - Reuters

Paramount Skydance has signed a deal to buy Warner Bros. Discovery for $110 billion, according to an audio recording of a meeting of WBD employees, which was reviewed by Reuters. The deal comes after Netflix dropped its claim to Warner Bros. assets the day before, on Feb. 26. The streaming giant did not raise the bid after months of struggle.

"Netflix had the legal right to respond with a new offer to Paramount's [increased] Skydance bid. As you all know, they ultimately decided not to do so. That led to the signing of the agreement with Paramount Skydance this morning," WBD director of revenue and strategy Bruce Campbell said at the meeting.

Paramount and Warner Bros. could not immediately respond to Reuters' request for comment.

According to Bloomberg's sources, Paramount Skydance paid Neftlix a $2.8 billion penalty.

Shares of Paramount at the end of trading on February 27 rose by almost 20%. Quotes WBD decreased by 2%.

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