Paramount finalized its acquisition of Warner Bros. Discovery on Tuesday, concluding a months-long hostile takeover that nearly collapsed amid multiple obstacles.
The transaction totaled approximately $81 billion (€72 billion), or nearly $111 billion when including the Warner Bros. debt assumed in the agreement.
The merger unites two of America’s oldest film studios under a new entity, Skydance Corporation.
Why Skydance Corp.? Who’s behind the new conglomerate?
The name Skydance derives from billionaire investor David Ellison, who initially acquired Paramount and its subsidiaries before pursuing the larger Warner Bros.
The bid faced fierce competition from Netflix, followed by regulatory and political scrutiny, but ultimately succeeded.
“Today marks a historic moment, not only for Skydance but for the entire industry,” Ellison stated, noting his family’s connections to US President Donald Trump.
Skydance shares began trading on the New York Stock Exchange on Tuesday under the ticker SKYD, with Warner Bros. Discovery shareholders receiving approximately $31 per share.
The deal closed less than a week after a California federal judge approved a settlement between Paramount and 12 US states that had sued to block the transaction over antitrust concerns.
Beyond the film studios—Paramount Pictures and Warner Bros. Pictures—the deal also consolidates CBS News and CNN, along with the HBO and CBS television brands. Ellison plans to merge the streaming platforms Paramount+ and HBO Max.
Ellison will serve as chairman and CEO, while former Mattel CEO Ynon Kreiz will operate as co-CEO handling day-to-day operations.
Skydance Corp. is expected to generate around $70 billion in total revenue based on its current components’ performance, targeting approximately $6 billion in cost savings over three years by leveraging merger overlaps.
