The news: HBO Max and Paramount+ will combine into a single streaming service once Paramount Skydance and Warner Bros. Discovery complete their merger, Paramount CEO David Ellison said in an investor call Monday.

Paramount says it intends for HBO to continue operating independently and continue developing content without significant oversight from Paramount leadership.

Zooming out: Paramount raised its bid for WBD last week, surpassing Netflix after months of pursuing the company. Netflix swiftly determined that it would not counter with a higher offer, referring to the acquisition as “no longer financially attractive.”

• WBD’s board determined that Paramount’s revised $111 billion offer was a “Company Superior Proposal.”
• Paramount’s bid includes $31 per share in cash, a quarterly ticking fee if the deal is not finalized by the end of 2026, a $7 billion regulatory termination fee, and a pledge to pay the $2.8 billion breakup fee owed to Netflix.
• Paramount has since paid Netflix the promised breakup fee.