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In a blockbuster move poised to reshape Hollywood’s power structure, the Warner Bros Paramount $110 billion deal was signed Friday morning, formalizing a seismic merger between Warner Bros. Discovery and Paramount Skydance.

The agreement, which includes roughly $29 billion in debt, was confirmed in an audio recording of a global town hall reviewed by Reuters. Bruce Campbell, Warner Bros.’ chief revenue and strategy officer, told employees that Netflix had the contractual right to match Paramount Skydance’s offer but ultimately declined.

“As you all know, they ultimately decided not to do that,” Campbell said. “That then resulted in a signed agreement with PSKY as of this morning.”

Neither Paramount nor Warner Bros. immediately responded to requests for comment.

A Bidding War Ends — And a Giant Is Born

The deal concludes a months-long tug-of-war that saw Netflix step aside after refusing to match Paramount’s enhanced $31-per-share bid. That offer topped Netflix’s earlier $27.75-per-share agreement for certain Warner assets and was deemed “superior” by Warner’s board.

Paramount had been circling Warner Bros. since late last year, launching what amounted to a hostile campaign to pry the storied studio away from the streaming pioneer. The consortium, backed by billionaire Larry Ellison and led by his son David Ellison, repeatedly sweetened its proposal — raising not only the price but also the termination fee to $7 billion from $5.8 billion should regulators block the transaction.

The financing package ballooned as well, with expanded commitments that include $45.7 billion in equity.

Activist investor Ancora Holdings, which owns a small stake in Warner Bros., had also pressed the HBO parent to engage more actively with Paramount.

The resulting combination will create one of the world’s largest film studios, granting Paramount access to Warner’s deep intellectual property vault — including franchises such as Fantastic Beasts and The Matrix. It also positions Paramount to strengthen its streaming ambitions through a potential pairing of HBO Max with Paramount+, sharpening its competitive edge against Netflix.

Regulatory Headwinds Ahead

Despite the celebratory tone in corporate corridors, the Warner Bros Paramount $110 billion deal is expected to face intense antitrust scrutiny in Washington, U.S. states including California, and abroad.

Lawmakers from both parties have voiced concerns that consolidating two major studios could shrink consumer choice and inflate prices. Cinema operators worry that fewer studios may mean fewer theatrical releases — and potential job losses.

Even with the Ellisons’ ties to President Donald Trump, regulatory review is likely to be rigorous.

Paramount has attempted to ease those concerns by boosting its breakup fee to $7 billion if regulators derail the merger — a costly insurance policy signaling confidence.