Paramount and Warner Bros. Discovery Close $110 Billion Mega-Merger
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The formation of the new Skydance entity consolidates massive streaming and cable assets, though it enters the market with significant debt.
A $110 billion acquisition of Warner Bros. Discovery by Paramount has been completed, creating a combined entertainment entity named Skydance, according to TechCrunch. The deal brings together major streaming platforms Paramount+ and HBO Max, alongside a vast network of cable channels including CBS, CNN, MTV, Comedy Central, TBS, Food Network, TNT, Adult Swim, Cartoon Network, and Nickelodeon.
Under the leadership of CEO David Ellison, the new company gains control of high-value intellectual property, including the DC Universe, "Game of Thrones," "The Lord of the Rings," "Yellowstone," "Harry Potter," "Star Trek," "Mission: Impossible," "Looney Tunes," and "SpongeBob SquarePants." Engadget reports that Skydance has committed to producing 30 theatrical films and more than 180 television series annually.
While the company reports annual revenue of nearly $70 billion, Engadget notes that Variety reports the entity will be immediately burdened with $80 billion in debt. The merger follows a bidding war with Netflix, which had previously agreed to buy Warner Bros.' streaming and film and television businesses, excluding cable. To secure the deal, Paramount offered shareholders additional cash and agreed to cover the breakup fee owed to Netflix, as reported by TechCrunch.
David Ellison, whose family is the largest shareholder with backing from Oracle co-founder Larry Ellison, previously merged Skydance Media with Paramount last summer in an $8 billion deal. The current merger was finalized after settlements with a Hollywood writers' union and a coalition of U.S. states. Skydance began trading on the New York Stock Exchange under the ticker symbol "SKYD," while Warner Bros. Discovery shares ceased trading on NASDAQ.