Paramount completes $78 billion Warner Bros. Discovery acquisition

Skydance Corporation (SKYD) announced Monday the completion of its acquisition of Warner Bros. Discovery, Inc. (WBD), forming a combined media and entertainment company named Skydance. The transaction brings together two film studios, two streaming services, broadcast networks including CBS and HBO, and news networks CBS News and CNN.

Under the terms of the agreement, WBD shareholders received $31.01666668 per share in cash, including ticking consideration. WBD common stock has ceased trading on the Nasdaq Exchange.

The combined company targets at least $6 billion in run-rate synergies over the next three years, focusing on technology, integration, procurement, marketing, and real estate rationalization, with the goal of reducing net leverage to its 3.0x target by the end of 2029.

David Ellison, Chairman and CEO of Skydance, said in a regulatory filing: Today is a historic day, not just for Skydance but for our entire industry. From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality. We’re grateful to everyone who made this possible – the employees, creative talent, and production teams of both companies, who worked tirelessly to get us here and inspire audiences around the world every day, as well as the advisors and partners who guided this transaction to completion. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.

Gerry Cardinale, Founder and Managing Partner of RedBird Capital and a Skydance Board Director, said: This is a defining moment for the industry. By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change. David, our Co-CEO Ynon Kreiz, and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent, and create long-term value for our shareholders.

In connection with the closing, Skydance transferred the listing of its Class B Common Stock from The Nasdaq Stock Market LLC to the New York Stock Exchange and changed its ticker symbol from PSKY to SKYD.