Paramount Skydance Completes Acquisition of Warner Bros Discovery
The multibillion-dollar transaction consolidates major film studios, cable networks, and streaming services into a single entertainment company with over 200 million subscribers.
Paramount Skydance officially closed its acquisition of Warner Bros. Discovery on Tuesday, Oct. 6, 2026. The combined business formed a single entertainment company named Skydance. Shares began trading on the New York Stock Exchange under the ticker symbol SKYD after Warner Bros. Discovery left the Nasdaq.
The deal carried an equity valuation of $81 billion, paying shareholders about $31.02 per share in cash. According to The Associated Press and Reuters, the total enterprise value was roughly $110 billion to $111 billion with assumed debt. The combined company holds approximately $80 billion in total debt.
The transaction used $47 billion in equity and $54 billion in debt commitments. The Ellison family and RedBird Capital Partners backed the equity alongside sovereign wealth funds from Saudi Arabia and Qatar. Bank of America, Citigroup, and Apollo Global Management arranged the debt financing.
David Ellison serves as chairman and chief executive officer of Skydance. Former Mattel head Ynon Kreiz joined as co-chief executive to direct operations and integration. Mark Thompson remains editor-in-chief of CNN, while Bari Weiss remains editor-in-chief of CBS News.
Supreme Court Justice Elena Kagan rejected an emergency petition on Monday, Oct. 5, 2026, removing the final obstacle. Her decision followed a settlement approved on Sept. 30, 2026, by U.S. District Court Judge Araceli Martínez-Olguín. A coalition of 12 states led by California had sued to block the merger.
Warner Bros. Discovery had agreed in late 2025 to sell studio and streaming assets to Netflix for $82.7 billion. Ellison made a hostile cash bid for the entire company in December 2025. Paramount paid Netflix a $2.8 billion fee in February 2026 after Netflix declined to match Ellison's offer.
Ellison said the closing was historic and focused on creative talent, global audiences, and shareholders. The California Department of Justice said the legal settlement protected competition and workers. Consumer advocacy groups stated that the transaction concentrated too much media ownership within one company.
Under the settlement, Skydance must release at least 30 films annually in domestic theaters for two years. The company must also increase domestic production spending by $300 million and establish independent editorial boards for newsrooms. Skydance is targeting $6 billion in cost savings as it integrates corporate divisions and streaming operations.
