In a landmark move for the entertainment industry, Paramount and Warner Bros. Discovery have officially merged to form a single powerhouse entity, Skydance Corp., with David Ellison at the helm as chairman and CEO.
The Details of the Merger
Valued at an astounding $111 billion, this merger unites two giants in the industry, combining an array of TV networks including CBS, CNN, Comedy Central, MTV, and TBS, along with streaming services Paramount+ and HBO Max. According to company reports, the newly formed Skydance is projected to generate annual revenues of $70 billion, although it faces a substantial $80 billion in net debt.
A Journey to Closing
The closure of this deal comes a little more than a year after Ellison’s Paramount Skydance, established in 2025 following the acquisition of Paramount Global, initiated its bid for Warner Bros. Discovery. During the process, Ellison navigated several challenges, including competition from Netflix and an antitrust lawsuit filed by twelve Democratic attorneys general, ultimately leading to the successful merger.
Trading and Shareholder Impact
As a result of the merger, Skydance Class B shares will commence trading on the New York Stock Exchange today, identified by the ticker symbol “SKYD.” Warner Bros. Discovery shareholders are set to receive cash equivalent to $31.01666668 per share, with WBD shares ceasing to trade on Nasdaq effective Tuesday.
A Historic Day for the Industry
David Ellison expressed his enthusiasm about the merger, stating, “Today is a historic day, not just for Skydance but for our entire industry.” He elaborated on the ambition behind the merger, emphasizing, “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality…. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders.”
Leadership Decisions
In a strategic move, Ellison has appointed Ynon Kreiz, the former CEO of Mattel, to serve as co-CEO of Skydance. On Monday, he also announced the senior leadership team that will guide the company moving forward.
More to come
