Warner Bros. Discovery has entered into a $110 billion merger agreement with Paramount Skydance, according to an official statement released by Paramount Global. The deal is now subject to approval by the European Commission.

The combined company plans to release at least 30 films per year — 15 from Warner Bros. and 15 from Paramount Pictures. As Warner Bros. had previously signed an agreement with Netflix, Paramount will pay the streaming giant $2.88 billion to terminate the existing contract.

The agreement follows Netflix’s decision not to proceed with its own acquisition of Warner Bros. Shortly before that, Paramount had submitted a more attractive offer. Netflix chose not to raise its bid, stating that doing so would render the purchase financially unviable.

As a result, Paramount acquired Warner Bros. Discovery in full, paying $110 billion for the entire company. Netflix had planned to purchase only the Warner Bros. film studio, the HBO Max streaming platform, and the HBO television network for $82.7 billion.

Last December, Warner Bros. initially agreed to Netflix’s proposal and rejected Paramount’s competing bid. However, after several improved offers from Paramount, Warner Bros. ultimately opted to accept Paramount’s terms.

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