In a landmark move set to reshape the Hollywood landscape, Warner Bros. Discovery will merge with Paramount Skydance following a monumental acquisition deal valued at $110 billion. This historic consolidation brings together two of the entertainment industry’s oldest and most renowned studios.

The announcement was initially reported by Reuters and Deadline, with details emerging from a statement by a high-ranking Warner Bros. executive. Bruce Campbell, who serves as Warner Bros.’ Chief Revenue and Strategy Officer, revealed the news during a morning town hall meeting, according to Reuters.

The merger comes on the heels of a prolonged and intense bidding war. Paramount ultimately triumphed in securing the acquisition of Warner Bros., a studio synonymous with a vast and iconic film library. Netflix, a major contender in the race, withdrew its bid the day before the announcement, expressing financial prudence.

In their statement, Netflix commented, “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive. This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Paramount’s ambitions are clear—they aim to expand their reach across movies, cable networks, and news. Dominic Patten, a senior editor at Deadline, emphasized that the bidding process showcased an aggressive and strategic approach spearheaded by Paramount’s leadership.

Paramount wants it all: Movies, cable networks and news. Dominic Patten, senior editor at Deadline, said the bidding reflected an aggressive approach driven by Paramount’s leadership.

“The main thing I think to take away from this is the sheer force Ellison brought to this, which was very much that Silicon Valley attitude of just go fast and break things, get what you want and at whatever price you have to,” Patten said.

The proposed merger will require approval from the U.S. Department of Justice and is already under review in California. Attorney General Rob Bonta said the state is closely examining the deal.

“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny – the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” Bonta said.

Almost 10 years ago, Hollywood’s big six became the big five when Disney bought most of 20th Century Fox. Now the big five looks like it’s destined to become the big four, including Universal and Sony, and the business of Hollywood moviemaking is one again in a time of profound transition.

The Associated Press contributed to this report.