Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a deal valued at $110 billion, including approximately $29 billion in debt, according to remarks made during a company town hall reviewed by Reuters.

Bruce Campbell, Warner Bros.’ chief revenue and strategy officer, said during the meeting that Netflix had the legal right to match Paramount Skydance’s offer but declined to do so.

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

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

The agreement caps a prolonged bidding battle after Netflix chose not to match Paramount’s $31-per-share offer, which exceeded the streaming company’s earlier $27.75-per-share proposal. Paramount had launched an aggressive campaign late last year to acquire Warner Bros., repeatedly raising its bid in an effort to win over the board.

The combined company would create one of the largest film studios in the world. Paramount would gain access to Warner’s deep intellectual property portfolio, including major franchises such as Fantastic Beasts and The Matrix. The merger could also bolster streaming ambitions, potentially combining HBO Max and Paramount’s platform to compete more directly with Netflix.

Paramount Skydance is led by David Ellison, son of billionaire Larry Ellison. In a revised offer, Paramount increased the termination fee payable if the deal fails to secure regulatory approval to $7 billion, up from $5.8 billion.

The transaction is expected to face antitrust scrutiny in Washington, in various U.S. states including California, and in foreign jurisdictions. Lawmakers from both parties have expressed concern that consolidation in the entertainment sector could limit consumer choice and drive up prices. Cinema operators have also warned that further studio consolidation could reduce theatrical releases and impact industry jobs.

If approved, the deal would represent one of the most significant restructurings in modern media, reshaping the competitive landscape of film and streaming.