Paramount has completed its acquisition of Warner Bros. Discovery, creating a new combined entertainment company known as Skydance in a transaction valued at approximately $110 billion, including debt.
The completion of the deal on Tuesday brings together two major forces in the global entertainment industry and significantly expands Skydance’s presence across film, television, streaming and news.
The company said the transaction closed after receiving all required regulatory approvals and satisfying other customary closing conditions.
As part of the corporate restructuring, Skydance’s Class B shares are set to begin trading on the New York Stock Exchange under the ticker symbol “SKYD.” At the same time, Warner Bros. Discovery shares ceased trading on the Nasdaq.
Warner Bros. Discovery shareholders are receiving approximately $31.02 per share in cash as part of the transaction.
The merger creates a company with an extensive portfolio of some of the world's best-known entertainment brands and media platforms.
The combined business brings together the Paramount and Warner Bros. film studios, as well as the Paramount+ and HBO Max streaming services.
Its television assets include major networks such as CBS and HBO, while its news operations include CBS News and CNN.
The combination is expected to give Skydance significant scale as competition in the global streaming and entertainment industries continues to intensify.
The new company will be led by David Ellison as CEO and Ynon Kreiz as co-CEO.
Skydance said the combined business has more than 200 million streaming subscriptions across its platforms and generates nearly $70 billion in annual revenue.
The company is also targeting major cost reductions as it integrates the two businesses.
Skydance expects to achieve at least $6 billion in annual savings within three years, with the savings expected to come primarily from areas including technology integration, procurement, marketing and the consolidation of properties.
The cost-cutting programme is expected to be a major component of the company's strategy as management works to integrate the two large entertainment businesses and improve operational efficiency.
Beyond reducing costs, Skydance plans to make significant changes to its streaming strategy.
Over time, the company intends to combine its streaming products into a single service, potentially creating a larger unified platform incorporating content from both Paramount and Warner Bros. Discovery.
The strategy would bring together a vast library of movies, television programmes, sports and other entertainment content under one streaming operation.
The company has also made commitments regarding theatrical film releases.
Skydance said it plans to release at least 30 theatrical films every year, with each film receiving a minimum 45-day cinema window.
The commitment comes amid continuing debate in the entertainment industry over the relationship between theatrical releases and streaming platforms. By maintaining a significant theatrical presence, the company appears intent on preserving cinema releases as an important part of its business strategy.
The transaction also involved $47 billion in new equity investment, providing capital for the newly combined company's operations and strategic plans.
Ownership of the voting shares is concentrated in the hands of the Ellison family and RedBird Capital Partners, which together hold all of the combined company’s voting shares.
The completion of the transaction marks a major transformation of the global media landscape.
Paramount brings a portfolio that includes its film and television operations, Paramount+, CBS and CBS News, while Warner Bros. Discovery contributes Warner Bros., HBO, HBO Max, CNN and a broad range of entertainment and media assets.
The combination gives Skydance an unusually broad collection of brands across Hollywood and the wider media industry.
Management now faces the complex task of integrating the two companies while attempting to deliver the promised savings and build a more competitive streaming business.
The planned integration of Paramount+ and HBO Max will be closely watched by consumers and investors, particularly as streaming companies continue to compete for subscribers and seek sustainable profits.
The company’s more than 200 million combined streaming subscriptions provide Skydance with substantial scale, but integrating technology platforms, content libraries and customer relationships across the two businesses will present significant operational challenges.
The transaction also gives Skydance a major presence in news through CBS News and CNN, adding another important dimension to the new company’s portfolio.
With the acquisition now completed, Skydance enters the market as a major global entertainment company with ambitions to compete more aggressively across film, television and streaming.
The company’s performance in the coming years will depend heavily on whether it can successfully integrate the two businesses, achieve its targeted $6 billion in annual savings, expand its streaming operations and maintain a strong pipeline of theatrical releases.
The launch of Skydance therefore marks a new chapter for both Paramount and Warner Bros. Discovery, while potentially reshaping the competitive landscape of the global entertainment industry.
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