Paramount has completed its acquisition of Warner Bros. Discovery, creating a combined company named Skydance with nearly $70 billion in revenue and a portfolio spanning film, television, streaming, news, and sports.
Under the transaction, Warner Bros. Discovery shareholders received $31.01666668 per share in cash.
WBD shares have ceased trading on Nasdaq, while Skydance Class B shares are trading on the New York Stock Exchange under the SKYD ticker.
The combination brings together two major film studios and two global streaming businesses along with CBS, HBO, CNN, CBS News and the cable networks of Paramount and Warner Bros. Discovery.
The combined sports portfolio includes CBS Sports and TNT Sports.
Skydance said it now has more than 200 million streaming subscribers across its platforms.
Its content portfolio includes franchises and properties ranging from Top Gun and Harry Potter to The White Lotus and SpongeBob SquarePants.
Skydance plans to produce at least 30 theatrical films annually, with each receiving a minimum 45-day theatrical window.
The company also has more than 180 television shows and series and plans to continue commissioning projects from independent studios and licensing content to third parties.
The transaction received approval from competition authorities across nearly 70 jurisdictions.
Skydance plans to eventually combine its direct-to-consumer streaming products into a single service.
Financially, the company is targeting more than $6 billion of run-rate synergies within three years.
Savings are expected primarily from technology, integration and procurement, marketing and real estate rationalization.
Skydance expects to reduce net leverage to approximately three times by the end of 2029 and generate more than $10 billion of free cash flow by 2030.
The combined company had pro forma content spending exceeding $30 billion over the latest 12-month period.
The transaction was also supported by $47 billion of new Class B common equity investment led by the Ellison Family, RedBird Capital Partners, Public Investment Fund, L’IMAD, Qatar Investment Authority and LionTree at $12 per share.
Bank of America, Citigroup and Apollo led the debt financing.
The Ellison Family holds the largest equity stake in Skydance, while the Ellison Family and RedBird together hold 100% of the combined company’s voting shares.
KEY QUOTES:
“Today is a historic day, not just for Skydance but for our entire industry. 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, for audiences everywhere. Now that ambition is a reality. We’re grateful to everyone who made this possible – the employees, creative talent, and production teams of both companies, who worked tirelessly to get us here and inspire audiences around the world every day, as well as the advisors and partners who guided this transaction to completion. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”
David Ellison, Chairman and CEO of Skydance
“This is a defining moment for the industry. By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change. David, our Co-CEO Ynon Kreiz, and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent, and create long-term value for our shareholders.”
Gerry Cardinale, Founder and Managing Partner of RedBird Capital and Skydance Board Director
