Paramount Skydance closed its takeover of Warner Bros. Discovery on Tuesday, forming a company called Skydance led by David Ellison and carrying about $80 billion in debt.
Paramount Skydance completed its takeover of Warner Bros. Discovery on Tuesday, creating a company to be called Skydance and giving chief executive David Ellison control of one of the largest entertainment groups, Reuters reported.
Deal values in Tuesday's reports were not identical. Reuters and The Washington Post described a $110 billion transaction. Variety said the deal was valued at $111 billion including assumed Warner Bros. Discovery debt. All three said the combined company will carry about $80 billion in net debt and that Ellison is seeking roughly $6 billion in cost savings. Variety said annual revenue of the new group is nearly $70 billion.
The combination brings together film studios behind major franchises with television and streaming brands including CBS, CNN, Paramount+ and HBO Max. Reuters said CNN and CBS News leadership would remain unchanged. Warner Bros. Discovery shares ceased trading on Nasdaq. Reuters said the combined stock moved to the New York Stock Exchange under the ticker SKYD.
Ellison named former Mattel chief executive Ynon Kreiz as co-chief executive to run day-to-day operations and integration, while Ellison keeps creative direction and strategy, Reuters reported. Settlements with a group of US states and a Hollywood writers union had removed the main legal barriers, Reuters said.
Ellison said in a statement quoted by Variety that the day was historic for Skydance and the industry, and that the aim was a stronger competitor across platforms. The company has not published a detailed timetable for job cuts.
People Sentiments Mixed
- David Ellison said the closing was a historic day for Skydance and the industry.
- Ellison said the next focus is a company that empowers creatives, entertains audiences and rewards shareholders.