Paramount SkyDance has completed its acquisition of Warner Bros. Discovery. The merged entity has been renamed SkyDance, consolidating two major Hollywood studios under the control of the Ellison family.
On October 6, Paramount SkyDance announced the completion of the acquisition process. Warner Bros. shareholders will receive $31.02 in cash per share. Reports estimate the total transaction value, including net debt, at approximately $110 billion. SkyDance Class B shares began trading on the New York Stock Exchange under the ticker 'SKYD,' opening down 2.7%, while trading of Warner Bros. shares was halted on Nasdaq.
The merger allows SkyDance to encompass a film studio, broadcast and news channels, and streaming services all in one. This includes Paramount Pictures, Warner Bros. Pictures, CBS, HBO, CNN, and streaming services HBO Max and Paramount+. Intellectual properties such as 'The Lord of the Rings,' 'Game of Thrones,' and the DC Universe are now consolidated. The combined annual revenue is estimated at around $70 billion, with over 200 million streaming subscribers.
Funding for the merger was secured through new capital of $47 billion, issuing Class B common stock at $12 per share. Larry Ellison, founder of Oracle and father of David Ellison, led the effort, with participation from private equity firm RedBird Capital, Saudi Arabia's Public Investment Fund (PIF), Qatar Investment Authority, and Abu Dhabi's Lema Holdings. However, the newly issued shares do not carry voting rights. Voting shares are entirely held by the Ellison family and RedBird. David Ellison will serve as chairman and CEO, while Inon Kreiz, former CEO of Mattel, will be co-CEO.
A previously contentious antitrust lawsuit was resolved on September 21, with a five-year consent decree involving 12 states. The agreement includes provisions for independent editorial boards for CBS and CNN, which the court approved on September 30. Remaining challenges include managing costs and debt. SkyDance has announced plans to reduce annual costs by over $6 billion within three years. The assumed debt stands at $80 billion. A report from Los Angeles County in August estimated that this deal could impact approximately 4,500 local film and TV jobs over the next three years.
In South Korea, Coupang Play has been exclusively supplying HBO and HBO Max originals since March of last year. With SkyDance indicating plans to consolidate its streaming services, the distribution method may change, although a timeline for integration has not been disclosed.
* This article has been translated by AI.
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