Skydance Completes $78 Billion Cash Purchase of Warner Bros. Discovery
The combination unites two studios, two streaming services, CBS and HBO, and CBS News and CNN under one owner.
Skydance Corporation (f/k/a Paramount Skydance Corporation) completed its all-cash acquisition of Warner Bros. Discovery, Inc. (WBD), paying an estimated $78.0 billion in cash to WBD common stockholders.
The transaction closed after the companies received all required regulatory approvals under the merger agreement and satisfied other customary closing conditions. Each share of WBD common stock converted into the right to receive, without interest, $31.01666668 in cash—the $31.00 base price plus the ticking consideration that accrued after September 30, 2026.
The February 27, 2026, merger agreement had set the base cash price at $31.00 a share and valued WBD at an enterprise value of $110 billion, or 7.5 times fully synergized 2026 EBITDA. Paramount Skydance issued $47 billion of new Class B shares at $16.02 a share, supported by a fully committed investment from the Ellison Family and RedBird Capital Partners. The companies had said the deal was expected to close in the third quarter of 2026; on September 30, they announced an anticipated closing date of October 6, 2026.
The combination brings together two major film studios, two global streaming services, premier television assets including CBS, HBO, and Paramount’s and WBD’s cable networks, two of the industry’s most recognized news networks, CBS News and CNN, and a content portfolio that includes live sports, a deep programming library, and an expansive collection of iconic brands and franchises.
David Ellison, Chairman and CEO of Skydance, said: “Today is a historic day, not just for Skydance but for our entire industry. 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. We’re grateful to everyone who made this possible – the employees, creative talent, and production teams of both companies, who worked tirelessly to get us here and inspire audiences around the world every day, as well as the advisors and partners who guided this transaction to completion. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”
Before closing, Ellison named Ynon Kreiz as Co-CEO of the anticipated combined company, effective at closing. Kreiz, who joined Paramount on October 5, 2026, from Mattel, will oversee day-to-day operations and integration of the combined businesses, while Ellison remains Chairman and CEO and leads strategy, creative, and technology.
Warner Bros. Discovery’s second-quarter 2026 results, reported in August, showed total revenues of $8.7 billion, a 12% ex-FX decrease from the year-earlier quarter. Streaming revenues rose 10% ex-FX to $3,079 million, with Streaming Adjusted EBITDA up 63% ex-FX to $512 million. Studios revenues fell 39% ex-FX to $2,328 million, and Studios Adjusted EBITDA declined 89% ex-FX to $96 million. Global Linear Networks revenues decreased 17% ex-FX to $3,991 million. The company ended the quarter with $3.4 billion of cash, $33.1 billion of gross debt, and 3.4 times net leverage, and had repaid a $15 billion bridge loan with a $13 billion Term Loan B and a €1.7 billion Term Loan B.