Paramount and Warner Bros. Discovery Agree to Historic Merger

Paramount and Warner Bros. are officially becoming one ... a historic merger -- and a huge Hollywood twist after Netflix bowed out yesterday of the race as the finish line was in sight.

Paramount and Warner Bros. Discovery agreed to the deal Friday ... after months of speculation over who would acquire the iconic Warners.

David Ellison, chairman and CEO of Paramount, said in part ... "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."

This story is developing ...