Paramount should buy Warner before the end of the summer

The deal should be done quickly. The new majority shareholder is ready to take big financial risks so as not to drag out the merger.

Paramount put $110 billion on the table. And more.

To be sure to complete the acquisition of Warner Bros. as quickly as possible. Discovery, the group is obviously ready to take very big financial risks.

Paramount Skydance has set itself an ambitious goal: to close the deal before the end of the summer. More precisely, by the end of the third quarter of 2026, in other words before the summer ends.

In a statement released Friday, David Ellison, president and CEO of Paramount Skydance, said: “From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacies of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. By bringing together these world-class studios, our complementary streaming platforms and the extraordinary talent that supports them, we will create even more value for audiences, partners and shareholders and we couldn’t be more excited for what lies ahead.”

Why go quickly?

Because to snatch away Warner, Paramount had to extend its stake. When Warner chose to terminate its previous agreement with Netflix, a contractual clause provided for a colossal termination fee: $2.8 billion in compensation for the streaming giant. And who paid the bill? It was Paramount who agreed to foot the bill for Warner as part of its deal. A gesture that says a lot about David Ellison’s determination: Warner had to fall into his hands, whatever the cost.

And the pressure doesn’t stop there.

The signed agreement also provides that if the transaction is not finalized by the end of September 2026, additional fees will begin to accumulate. A “ticking fee” in financial jargon. Clearly, each month of delay risks increasing the final sale price.

Behind the scenes, this means that regulatory validations will have to move quickly, that administrative authorities will not oppose the project and that shareholders will follow so that financing is locked in without any missteps. The bet is risky. Paramount is not absorbing a secondary player: it is buying a group larger than itself, already burdened with debt inherited from the merger with Discovery. Integration will require billions in savings and iron financial discipline.