David Ellison's company closed a takeover of Warner Bros Discovery valued at about 110 billion dollars. The combined firm trades on the New York Stock Exchange as SKYD and carries about 80 billion dollars of debt.
Paramount Skydance completed its takeover of Warner Bros Discovery on Tuesday, Reuters reported, in a deal the agency valued at 110 billion dollars. The combined company, called Skydance, brings together film studios, CBS, CNN, Paramount+ and HBO Max. Shares moved from Nasdaq to the New York Stock Exchange under the ticker SKYD.
Chief executive David Ellison told employees the merger was a chance to build a next-generation media company and to take on the biggest players in the industry. He told reporters that older studios had allowed Netflix and Amazon Prime Video to disrupt their businesses. Co-chief executive Ynon Kreiz, the former Mattel chief, will run day-to-day operations and the integration.
The company is expected to carry about 80 billion dollars of debt and is targeting 6 billion dollars in savings, a large part of which Paramount said would come from non-labour sources. It plans to combine HBO Max and Paramount+ and has pledged at least 30 films a year in the first two years after closing. Ellison has pledged to spend 30 billion dollars or more each year on content, Reuters reported.
CNN chief Mark Thompson and CBS News editor-in-chief Bari Weiss will stay and report separately to Ellison and Kreiz. President Donald Trump told reporters the merger would make a great company. As part of settlements that cleared legal barriers, Ellison agreed to an editorial independence board for CNN and CBS. Reuters cited experts who warned the board would be toothless.
Board additions named on Tuesday included former Activision Blizzard chief Bobby Kotick and Laurene Powell Jobs. Former British prime minister Tony Blair will join as an adviser. Warner Bros shareholders received an additional 41.9 million dollars in a ticking fee, according to a regulatory filing cited by Reuters.
People Sentiments Mixed
- Ellison said the goal was not simply to get bigger but to take on the biggest players.
- Trump said the merger was great and that he was glad they let it go.
- Ellison said he understood why people in Hollywood were apprehensive and asked what the alternative was.