Paramount Skydance Completes $110 Billion Warner Bros Discovery Deal

Paramount Skydance Corp completed its $110 billion acquisition of Warner Bros Discovery on Tuesday, creating a global media powerhouse now operating under the Skydance name.

The combined company shifted its primary stock listing to the New York Stock Exchange under the ticker “SKYD.” Shares slipped about 2% in morning trading amid broader market volatility.

Under the finalized agreement, Warner Bros Discovery shareholders received $31.0167 per share in cash, plus a $41.9 million ticking fee covering the period between late September and the transaction’s closing.

The Skydance-Warner Bros Discovery merger combines some of the entertainment industry’s biggest assets, spanning major film studios, streaming platforms, television networks and news organizations including CBS News and CNN. The company plans to use its expanded scale and technology capabilities to address challenges such as cord-cutting and rising content production costs.

Management has committed to releasing at least 30 theatrical films annually, each receiving a guaranteed 45-day theatrical window, while producing more than 180 television series.

The combined business generates nearly $70 billion in annual revenue. Skydance expects to achieve at least $6 billion in annualized run-rate synergies over the next three years by consolidating technology, marketing and corporate operations. Annual free cash flow is projected to exceed $10 billion by 2030.

However, CEO David Ellison must also manage a heavily leveraged balance sheet. The company carries approximately $80 billion in total debt following the acquisition and aims to reduce net leverage to 3.0 times by 2029.

The transaction was supported by $47 billion in new equity financing priced at $12 per share, with backing from the Ellison Family, RedBird Capital and several sovereign funds. The Ellison Family and RedBird retain 100% of the combined company’s Class A voting shares.

Following regulatory approvals across nearly 70 jurisdictions and settlements with state attorneys general and creative labor unions, Skydance will now focus on integrating its operations. A major priority will be combining Paramount+ and HBO Max into a unified streaming platform as the newly enlarged media group competes for global subscribers.