Paramount Skydance announced Tuesday that it has finalized a $110 billion acquisition of Warner Bros. Discovery, merging two of the nation’s largest film and television studios under the Skydance name. The deal, first disclosed in February, makes Warner Bros. Discovery a wholly‑owned subsidiary of Skydance and brings together a vast portfolio of broadcast, cable and streaming assets.
Scope of the combined company
The newly formed Skydance entity now controls a roster that includes Paramount Pictures, Warner Bros., HBO, HBO Max, Paramount+, Pluto TV, CBS, CNN, CBS Sports, TNT Sports, Nickelodeon, Cartoon Network, MTV, Food Network, BET, HGTV and Comedy Central. According to Skydance, the combined platforms serve more than 200 million streaming subscribers across the United States and abroad.
Financial terms and shareholder payout
Warner Bros. Discovery shareholders received $31.01666668 per share in cash at closing, reflecting the $31 base price plus a daily fee that began after September 30. The transaction valued Warner Bros. Discovery at $110 billion in enterprise value.
Leadership and cost‑synergy goals
David Ellison, chairman and CEO of Skydance, called the closing “a historic day, not just for Skydance but for our entire industry.” He will co‑lead the new company with Ynon Kreiz, former chairman and CEO of Mattel. Skydance has projected at least $6 billion in annualized cost synergies within three years of the merger.
Antitrust settlement and protective measures
The acquisition was cleared after Paramount settled an antitrust lawsuit brought by California and eleven other states. California Attorney General Rob Bonta’s office required the merged company to release a minimum of 30 films annually in each of the first two years and 32 films annually in years three through five. The settlement also mandates at least $1.5 billion in additional U.S. film‑production spending over five years compared with 2025 levels, creates a $47.5 million workforce fund, and keeps basic cable negotiations for Paramount and Warner Bros. separate for five years.
To safeguard editorial independence, the settlement establishes a News Editorial Independence Board tasked with overseeing CNN and CBS news operations.
Market reaction
Following the closing, Skydance Class B shares began trading on the New York Stock Exchange under the ticker SKYD. Warner Bros. Discovery shares ceased trading on Nasdaq after the transaction was completed.
Implications for the industry
The merger creates a vertically integrated media conglomerate that can compete more effectively with other global entertainment giants. By consolidating production, distribution and streaming capabilities, Skydance aims to deliver a broader range of content to consumers while preserving competition through the settlement’s film‑release and production commitments.
Industry analysts note that the combined entity’s scale may drive further innovation in streaming technology and content creation, though they will watch closely how the mandated film‑release caps and production spending requirements influence market dynamics.
Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.
