Paramount and Warner Bros Discovery have formally confirmed details of their $110 billion tie-up.
Months of soliciting incrementally tweaked offers finally paid off on Thursday when the WBD board concluded that Paramount’s latest bid was superior to a previously agreed $82.7bn deal with Netflix.
The world’s biggest streaming service then declined to improve its offer, leaving Paramount as the sole bidder.
Details of the successful offer have now been published, including a commitment that the combined company will release all films in cinemas for at least 45 days after which “each film will transition to the current industry standard home video window, preserving paid video-on-demand prior to availability on subscription streaming services.”
In countries which have locally mandated or agreed windowing regimes, such as France, the new company will continue to adhere to these.
Additionally the statement talks up the “opportunities for world class storytelling – including local production” offered by the combined company’s portfolio of local cable and free-to-air networks.
It says output from these will be “seen globally and allow us to continue to serve local audiences around the world with the best stories across TV, film, sports, and news.”
And it confirms that the company will continue to license its films and shows to third-party platforms and buy content for its channels and streaming services from external studios and producers.
David Ellison, Chairman and CEO of Paramount, said: “From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy 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 behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead.”
David Zaslav, President and CEO of Warner Bros. Discovery, added: “I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry.
“Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors.
“We look forward to working with Paramount to complete this historic transaction.”