Paramount Closes 110 Billion Dollar Warner Bros Acquisition
Skydance completed its acquisition of Warner Bros. Discovery on October 6, 2026, combining two of Hollywood’s oldest studios into a media conglomerate valued at $110 billion on an enterprise basis. The transaction concludes a yearlong corporate battle, creating a combined entity that trades under the ticker symbol SKYD, CNBC reported.
The newly formed company reaches more than 200 million streaming subscribers globally and unites major television assets, including CNN and CBS News. David Ellison serves as CEO of Skydance, leading the enterprise alongside co-CEO Ynon Kreiz, the former Mattel CEO who oversaw the production of the 2023 film Barbie.
Shareholders receive cash as SKYD absorbs debt
Under the terms of the agreement, Warner Bros. Discovery shareholders receive $31.00 per share in cash, or approximately $31.02 with accrued daily payments through the closing date. The transaction counts as a taxable sale for those holders, who exit the company without holding shares in the newly formed entity.
Conversely, former Paramount Skydance holders retain their stakes in SKYD, which absorbs approximately $80 billion in combined debt. Oracle co-founder Larry Ellison pledged 36% of his Oracle shares as collateral for the deal financing. Following the closure, Moderna replaced Warner Bros. Discovery in the Nasdaq-100 index.
Regulatory Approvals and Theatrical Mandates
The transaction secured clearance from the United States Department of Justice on June 12, 2026, followed by European Union antitrust approval on July 22, 2026. The EU clearance required concessions, including a 10-year restriction preventing film distribution deals with Universal in Europe and the divestment of Paramount’s stake in United International Pictures.
A group of 12 state attorneys general led by California Attorney General Rob Bonta filed an antitrust lawsuit in July 2026 to block the merger. A court-approved settlement on September 30, 2026, resolved the legal challenge by imposing strict operational requirements. The agreement forces the studio to release at least 30 films per theatrical year, with a $30 million penalty for each film short of the target. Each release must remain in theaters for at least 45 days before transitioning to streaming platforms.
Industry figures oppose merger as leaders appointed
The merger drew public pushback from figures within the entertainment industry, including actor Mark Ruffalo. Writing on Threads, Ruffalo stated that the transaction would stifle creativity and weaken free speech, calling it a bad deal for the country.
Leadership appointments for the combined entity include Bari Weiss overseeing CBS and Mark Thompson leading CNN. Casey Bloys, George Cheeks, and JB Perrette take charge of the expanded streaming and television divisions, while David Berson manages the global sports group.
Frequently Asked Questions
What is the ticker symbol for the newly combined company?
The combined enterprise trades under the ticker symbol SKYD, replacing the previous listings for Paramount Skydance and Warner Bros. Discovery.
How many theatrical releases does the settlement require per year?
A court-approved settlement with 12 state attorneys general requires the studio to release at least 30 films annually in theaters, with a $30 million penalty for each movie it falls short.
Who serves as co-CEOs of Skydance?
David Ellison leads the company as CEO alongside co-CEO Ynon Kreiz, who previously served as the CEO of Mattel.
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