.jpg)
In a transformative move aimed at strengthening its position in the global streaming market, Paramount Skydance Corp. has announced plans to combine HBO Max and Paramount+ into a single streaming platform following its $110 billion acquisition of Warner Bros. Discovery.
The transaction, formally signed on 27 February, is expected to close in the third quarter, subject to shareholder and regulatory approvals. Paramount agreed to pay $31 per share in cash, prevailing in a competitive bidding process that included Netflix Inc..
David Ellison, chief executive officer of Paramount, said the merged company intends to retain HBO as a standalone brand even after integrating the streaming services.
“Across the two platforms, there are over 200 million direct-to-consumer subscribers today in more than 100 countries and territories worldwide, positioning us to compete effectively with the leading streaming services in today’s marketplace,” Ellison said.
On an investor call, Ellison emphasised that the merger is not about reducing output but expanding ambition. The combined entity is targeting at least 30 theatrical releases annually across its studios.
“This is not about consolidation; it’s about reinventing the business,” he said.
Chief financial officer Dennis Cinelli projected that in 2026 the combined company will generate $69 billion in pro-forma revenue and approximately $18 billion in estimated earnings before interest, taxes, depreciation and amortisation (EBITDA). Net debt is expected to stand at $79 billion.
Ellison also outlined the expanded sports portfolio, which will include rights to the National Football League, Ultimate Fighting Championship, March Madness, the PGA Tour and the Olympics in Europe. He noted that a previously signed $7.7 billion UFC agreement allows flexibility to air events on Warner Bros.’ TNT network.
The company clarified that it has no plans to spin off its cable networks following the merger. Chief operating officer Andy Gordon said a shareholder vote is expected in the spring.
To finance the transaction, Paramount has secured $47 billion in equity backed by the Ellison family and RedBird Capital Partners, alongside plans to borrow $54 billion from Bank of America, Citigroup and Apollo Global Management.
Shares of Paramount fell 1.9% to $13.26 in morning trading in New York following the announcement.
