Paramount has completed its acquisition of Warner Bros. Discovery, bringing the two media and entertainment businesses together under a new combined company called Skydance. The transaction, completed on October 6 following regulatory approvals across nearly 70 jurisdictions, creates one of the world’s largest media and entertainment companies, combining major film studios, streaming platforms, television networks, news businesses, sports properties and extensive content libraries.
The new Skydance brings together Paramount’s and Warner Bros. Discovery’s film and television assets, including CBS, HBO, Paramount’s cable networks, WBD’s cable portfolio, CBS News, CNN, CBS Sports and TNT Sports. Its entertainment portfolio also spans franchises including Top Gun, Harry Potter, The White Lotus and SpongeBob SquarePants. The combined company says it will serve audiences across more than 200 countries and territories, with more than 200 million streaming subscribers across its platforms. It also has a library spanning film and television and plans to release at least 30 theatrical films annually, each with a minimum 45-day theatrical window.
Skydance currently has more than 180 television shows in its portfolio and plans to continue working with independent production companies through commissions and content licensing. The company says the approach will create additional opportunities for talent and production teams across the entertainment industry.
David Ellison, Chairman and CEO of Skydance, said: “Today is a historic day, not just for Skydance but for our entire industry. From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality. We’re grateful to everyone who made this possible – the employees, creative talent, and production teams of both companies, who worked tirelessly to get us here and inspire audiences around the world every day, as well as the advisors and partners who guided this transaction to completion. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”
The deal also marks a significant shift in the company’s streaming strategy. Skydance plans to improve its direct-to-consumer products, with the Paramount and Warner Bros. Discovery streaming services expected to eventually unify into a single platform. On the financial side, the combined company expects nearly $70 billion in revenue and is targeting more than $6 billion in run-rate synergies over the next three years. Savings are expected to come from areas including technology, integration, procurement, marketing and real estate.
Skydance also expects to generate more than $10 billion in free cash flow by 2030, while its pro forma content spending stood at more than $30 billion for the latest twelve-month period.
Gerry Cardinale, Founder and Managing Partner of RedBird Capital and a Skydance Board Director, said: “This is a defining moment for the industry. By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change. David, our Co-CEO Ynon Kreiz, and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent, and create long-term value for our shareholders.”
Following the completion, Skydance Class B shares will trade on the New York Stock Exchange under the ticker SKYD, while Warner Bros. Discovery’s common stock has ceased trading on Nasdaq. The Ellison Family now holds the largest equity stake in Skydance, while the Ellison Family and RedBird Capital Partners are the sole holders of Paramount Class A Common Stock, including all voting shares in the combined company.
The transaction also included $47 billion in new equity investment in Class B Common Stock, led by the Ellison Family, RedBird, Public Investment Fund, L’IMAD, Qatar Investment Authority and LionTree. Debt financing was led by Bank of America, Citigroup and Apollo.
