Paramount has completed its $110 billion acquisition of Warner Bros Discovery, creating Skydance
The new company combines Paramount, Warner Bros, HBO, CBS, CNN and major streaming and sports assets
David Ellison now leads one of Hollywood’s largest entertainment groups
Paramount completed its acquisition of Warner Bros Discovery on Tuesday, creating a global entertainment company that combines Paramount and Warner Bros, as well as CBS, HBO, CNN, CBS News, Paramount+ and HBO Max under one corporate group.
Skydance, formerly known as Paramount Skydance Corporation, said the transaction had received all required regulatory approvals and that Warner Bros Discovery shares had ceased trading on Nasdaq. Skydance Class B shares began trading on the New York Stock Exchange on Tuesday under the ticker “SKYD”.
The company said its portfolio includes major franchises such as Top Gun and Harry Potter, along with The White Lotus and SpongeBob SquarePants. It also brings together CBS Sports and TNT Sports, giving the new group a substantial live-sports portfolio.
Skydance said the combined company has more than 200 million streaming subscribers across its platforms and will operate across more than 200 countries and territories.
“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,” Skydance Chairman and CEO David Ellison said. “Now that ambition is a reality.”
Bigger Content Output
Skydance said the combined business will target a minimum of 30 theatrical films a year, each with a theatrical window of at least 45 days, while its television operations already comprise more than 180 shows and series.
The company also plans eventually to bring its direct-to-consumer streaming services together into a single platform. It said the combined streaming business would receive investment in technology and its consumer products as integration proceeds.
The enlarged group will have nearly $70 billion in annual revenue, according to Skydance, while the company is targeting at least $6 billion in annualised synergies within three years. It expects those savings to come primarily from technology and integration, procurement, marketing and reductions in real-estate costs.
Ownership And Deal
Under the transaction terms, Warner Bros Discovery shareholders received $31.01666668 in cash per share. Warner Bros Discovery common stock stopped trading on Nasdaq after the transaction closed.
The new company is controlled through Paramount’s Class A voting shares by the Ellison family and RedBird Capital Partners. Skydance said the deal also involved $47 billion of new equity investment from a consortium including the Ellison family, RedBird, Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and other investors.
The transaction marks one of the biggest consolidations of Hollywood’s traditional studio, television, streaming and sports businesses, creating a single group with some of the entertainment industry’s most recognisable brands and extensive content libraries.
