Paramount increased its takeover offer for Warner Bros. Discovery by $1 to $31 per share, winning a bidding war after Netflix withdrew and securing approval from the WBD board. This victory positions Paramount and Skydance CEO David Ellison to lead one of Hollywood’s largest studios, television networks and streaming platforms.

The merger is estimated to create $6 billion in annual cost synergies and savings, which will almost certainly result in thousands of job cuts across both companies. Paramount has communicated that these reductions are necessary to streamline operations and compete effectively in a consolidating media landscape.

The combination of Warner Bros. Discovery’s portfolio and Paramount’s assets will form a formidable rival to Disney’s studio and streaming divisions, including Disney+. The enlarged content library, NFL rights on Paramount+, and enhanced scale could pressure Disney’s subscriber growth and advertising negotiations.

Shareholders of both companies must vote to approve the deal, and it will undergo regulatory scrutiny from antitrust authorities and state attorneys general. While the combined company’s market post-merger won’t match Netflix’s scale, it faces potential challenges from regulators concerned about reduced competition and media consolidation.