Bringing together two of the biggest studios in Hollywood.
On Tuesday, October 6, it was officially announced that Paramount Skydance has completed its acquisition of Warner Bros. Discovery, Inc., after a tumultuous journey that ran for almost a year.
Now, both company will be running under the company name Skydance Corporation, which has under its umbrella two major film studios in Warner Bros. Pictures and Paramount Pictures, two global streaming services in Paramount+ and HBO Max, as well as premier television portfolio including U.S. free-to-air giant CBS, HBO, and Paramount’s and WBD’s cable networks.
Also under the same parentvcompany now are CBS News and CNN, CBS Sports and TNT Sports, and a “deep programming library and expansive collection of brands and franchises.”
“The transaction closed following receipt of all required regulatory approvals under the merger agreement and satisfaction of other customary closing conditions,” said Skydance, as its Class B shares begin trading on the New York Stock Exchange (NYSE) under the new ticker symbol “SKYD.”
“Under the terms of the agreement, WBD shareholders received an amount in cash equal to $31.01666668 per share. WBD shares have ceased trading on NASDAQ, effective today,” noted the company.
It also noted that the aim of the combined company is to “build the next-generation global media and entertainment company powered by creativity and technology.”
“Storytelling will drive the combined company’s growth, bringing creative visions to life for audiences in more than 200 countries and territories and creating greater opportunities for workers across the entertainment industry,” it sakd.
Skydance noted that the company has the most diverse film and television library of any studio, the largest theatrical output in the industry, 200+ million streaming subscribers across platforms, an iconic broadcast network, an unmatched sports portfolio, and a franchise portfolio spanning Top Gun and Harry Potter to White Lotus and SpongeBob SquarePants.
“From this foundation, Skydance is committed to delivering for the creative community and consumers, with at least 30 theatrical films annually, each with a minimum 45-day theatrical window, and already boasts 180+ television shows,” it said.
Meanwhile, on TV and streaming, Skydance also pledged to continue supporting the independent production sector by commissioning content from independent studios and licensing its own content to third parties.
David Ellison, Chairman and CEO of Skydance, said in a statement: “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,” he said.
Ellison furthered, “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.”
The company also said that consumers can expect “greater innovation” as it will havr technology at its core, as there will be “significant improvements to its direct-to-consumer streaming products, which will unify into a single service over time.”
The transaction received unanimous approval from competition authorities covering nearly 70 jurisdictions worldwide.
Meanwhile, Skydance also claimed that the combination will strengthen competition and expand consumer choice, both on Skydance’s own platforms and across the broader industry.
Skydance is now positioned as one of the largest media and entertainment companies in the world, with nearly $70 billion in revenue.
“We are targeting $6 billion-plus in run-rate synergies over the next three years. Applying the same operational playbook that allowed Paramount to exceed its synergy targets following the Skydance-Paramount merger, the synergy savings will come primarily from technology, integration and procurement, marketing and real estate rationalization,” it noted.
The plan is to make the company zleaner and more nimble,” which will free it to grow its investment in the stories, creators and technology that “matter most,” while aldo reducing net leverage to its 3.0x target by the end of 2029.
“Powered by best-in-class content, streaming scale and technological edge, the combined company expects to generate more than $10 billion in free cash flow by 2030 – reducing leverage while funding growth and investment. Its pro forma content spend of more than $30 billion for the last twelve-month period will be disciplined and strategic, prioritizing audience reach and long-term value creation,” it added.
