Paramount Skydance completed its acquisition of Warner Bros. Discovery on Tuesday, combining two major Hollywood studios, the CBS News and CNN news operations, cable networks, and streaming services under a company renamed Skydance.
The transaction valued Warner Bros. Discovery at $110 billion in enterprise value when the companies announced the definitive agreement in February. Warner Bros. Discovery shareholders received $31.01666668 per share in cash at Tuesday’s closing, reflecting the $31 base price plus a daily fee that began after September 30.
A Warner Bros. Discovery filing with the Securities and Exchange Commission confirmed that the acquisition closed October 6 and that Warner Bros. Discovery became a wholly owned subsidiary of Skydance.
The combined company includes Paramount, Warner Bros., HBO, HBO Max, Paramount+, Pluto TV, CBS, CNN, CBS Sports, TNT Sports, Nickelodeon, Cartoon Network, MTV, Food Network, BET, HGTV and Comedy Central. Skydance said it has more than 200 million streaming subscribers across its platforms.
David Ellison, chairman and CEO of Skydance, called the closing “a historic day, not just for Skydance but for our entire industry” in the company’s announcement. Ellison will lead the company with co-CEO Ynon Kreiz, who previously served as chairman and CEO of Mattel. Skydance is targeting at least $6 billion in annualized cost synergies within three years.
Antitrust Settlement Shaped Closing
The acquisition closed after Paramount settled an antitrust lawsuit brought by California and 11 other states. California Attorney General Rob Bonta’s office said the agreement requires the merged company to release 30 films annually in each of the first two years and 32 annually in years three through five.
The settlement also requires at least $1.5 billion in additional U.S. film-production spending over five years compared with 2025 levels, creates a $47.5 million workforce fund, and requires Paramount and Warner Bros. basic cable negotiations to remain separate for five years. The company also agreed to establish a News Editorial Independence Board intended to help CNN and CBS maintain editorial independence.
“Let me be clear: This settlement is not a vote of support for this merger,” Bonta said in the September 21 release. He said the agreement resolved the states’ antitrust concerns while adding enforceable protections for competition and workers.
Skydance Class B shares began trading Tuesday on the New York Stock Exchange under the ticker SKYD. Warner Bros. Discovery shares stopped trading on Nasdaq after the closing.
