Paramount Skydance has completed the acquisition of Warner Bros. Discovery for about 110 billion USD, creating one of the largest media and entertainment conglomerates in the world. The combined company will be called Skydance, Reuters reported.
The deal was finalized on October 6 after receiving the necessary regulatory approvals and fulfilling the other conditions of the agreement. David Ellison will be at the helm of the new media group.
The scale of the merger is significant. Under one corporate roof, two major film studios, the streaming services Paramount+ and HBO Max, the television assets CBS and HBO, the news networks CBS News and CNN, as well as the sports divisions CBS Sports and TNT Sports, now fall under one corporate roof.
The company's portfolio also includes some of the most recognizable entertainment brands and series in the world - from “Harry Potter“ and DC to “Top Gun“, “Mission Impossible“, “The White Lotus“ and “SpongeBob SquarePants“.
According to official data, the new Skydance has over 200 million subscribers on its streaming platforms and generates nearly $70 billion in revenue.
At least 30 films per year
One of the main strategies after the merger will be to increase production. The company is committed to releasing at least 30 films per year in cinemas, each of which will have a minimum 45-day period of exclusive theatrical distribution.
The new group also has more than 180 television shows and series.
The plans also include gradually merging the company's direct streaming offerings into one service. This puts Skydance in even more direct competition with other global players in the streaming market.
The goal is over 6 billion USD in savings
The large-scale merger will be followed by a serious restructuring. Management aims to achieve more than $6 billion in annual synergies within three years.
Savings should come primarily from integrating the group's technology systems, procurement, marketing and real estate optimization.
By 2030, the company expects to generate more than $10 billion in free cash flow, while simultaneously reducing debt and continuing to invest in content and technology.
The shares are now traded as SKYD
With the closing of the deal, Warner Bros. Discovery shares ceased trading on Nasdaq. Shareholders of the company will receive approximately $31.02 in cash per share, subject to the terms of the closing of the acquisition.
The combined company's Class B shares will be listed on the New York Stock Exchange from Nasdaq and will trade under the ticker symbol SKYD on October 6.
The transaction raised $47 billion in new equity. Investors include the Ellison family, RedBird Capital Partners, the Saudi Arabian Public Investment Fund (PIF), the Qatar Investment Authority and other investors.
The Ellison family remains the largest shareholder in the new Skydance, and together with RedBird Capital Partners, controls all of the voting shares.
The closing of the transaction marks one of the most significant transformations in the American entertainment industry in recent years. The merger of Paramount and Warner Bros. Discovery brings together a vast catalog of films, television productions, sports rights, news channels and streaming services into one company at a time when traditional Hollywood is trying to adapt to global competition in streaming and the rapid introduction of new technologies.