Paramount Skydance Completes Warner Bros. Discovery Acquisition

Shanya Salar 1 hour ago
FILE - A visitor walks past portraits of DC Comics superheroes as she enters the "Action and Magic Made Here" interactive experience at the Warner Bros. Studio Tour Hollywood media preview on June 24, 2021, in Burbank, Calif. (AP Photo/Chris Pizzello, File)
FILE - A visitor walks past portraits of DC Comics superheroes as she enters the "Action and Magic Made Here" interactive experience at the Warner Bros. Studio Tour Hollywood media preview on June 24, 2021, in Burbank, Calif. (AP Photo/Chris Pizzello, File)

At a Glance

  • Paramount Skydance has completed its $81 billion acquisition of Warner Bros. Discovery.
  • The deal combines major Hollywood studios, streaming platforms, and news organizations under one company.
  • The new conglomerate will control properties including HBO Max, Paramount+, CNN, and CBS News.

Paramount Skydance has completed its acquisition of Warner Bros. Discovery, bringing two major Hollywood entertainment companies under a single media conglomerate led by David Ellison and co-CEO Ynon Kreiz.


Key Statements and Focus Area

  • Acquisition: The acquisition cost Paramount $81 billion, excluding debt, after Skydance acquired Paramount for $8 billion last year.
  • Entertainment: Ellison has pledged that the combined studios will release 30 films annually during the first two years following the merger, increasing to 32 films annually over the following three years.
  • Focus Area: The merger creates a major entertainment group spanning film studios, streaming services, and television news networks.

The combined company now controls Paramount+ and HBO Max, alongside extensive film and television libraries that include Star Trek, Barbie, Top Gun, Harry Potter, and Superman. Its media holdings also include CNN and CBS News, placing two major news organizations within the same corporate group.

Morningstar estimates the combined company will carry around $80 billion in net debt following the transaction. Warner Bros. Discovery CEO David Zaslav is set to receive a compensation package valued at about $550 million following the completion of the deal, according to a March regulatory filing.

The new company expects annual revenue of nearly $70 billion. Before the merger, Paramount Skydance and Warner Bros. Discovery reported combined revenue of $65.3 billion for the 12 months ending in June, according to FactSet. The commitment was made as part of a settlement with 12 states that had sued to block the transaction.

FYI

The merger brings together two companies with extensive entertainment and television operations at a time when the industry is increasingly shifting toward streaming.

In July, properties owned by Paramount and Warner Bros. Discovery accounted for a combined 11.8% of total U.S. television viewing, according to Nielsen. Paramount properties accounted for 6.5%, while Warner Bros. Discovery properties represented 5.3%.

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