Paramount and Warner Bros Complete $81 Billion Merger, Forming Skydance Corp

Paramount has officially completed its $81 billion acquisition of Warner Bros. Discovery, culminating in the creation of a new media powerhouse named Skydance Corporation. The merger, driven by billionaire investor David Ellison, marks the end of a complex and contentious process that included a bidding war against Netflix and significant legal challenges from U.S. regulators.

The deal, valued at approximately €72 billion or nearly $111 billion when including Warner Bros. Discovery’s debts, was finalized on Tuesday. It follows a federal court settlement in California that resolved antitrust lawsuits filed by 12 U.S. states seeking to block the transaction on the grounds that it would reduce competition in the entertainment industry.

Ellison, whose family maintains ties to former U.S. President Donald Trump, initially took control of Paramount before launching his hostile bid for the larger Warner Bros. Discovery. Reflecting on the completion of the deal, Ellison described it as a historic moment for the company and the broader industry. Shares of the new entity, Skydance, began trading on the New York Stock Exchange under the ticker symbol SKYD, with Warner Bros. Discovery shareholders set to receive approximately $31 per share.

The consolidation brings together two of Hollywood’s most storied film studios, Paramount Pictures and Warner Bros. Pictures. It also unites major broadcasting assets, including CBS News and CNN, as well as prominent television brands such as HBO and CBS. Ellison has announced plans to merge the streaming services Paramount+ and HBO Max into a single platform.

Leadership of the new corporation will be led by Ellison as chairman and CEO, with Ynon Kreiz, the former chief executive of Mattel, serving as co-CEO responsible for day-to-day operations. Skydance Corp. projects total revenues of around $70 billion based on current performance metrics of its constituent parts and anticipates achieving cost savings of approximately $6 billion within three years by eliminating overlapping functions.