The largest M&A transaction in Hollywood history now has a closing date: Oct. 6. Skydance will complete its $111 billion acquisition of Warner Bros. Discovery, creating a company that spans Paramount, Warner Bros., HBO, CBS, CNN and a portfolio of franchises from Harry Potter to Mission: Impossible. On Oct. 2, David Ellison announced the corporate name would be Skydance Corp.
Final hurdle cleared
U.S. District Court Judge Araceli Martínez-Olguin approved the antitrust settlement on Sept. 30, ending the last legal threat to the deal. The ruling followed a Sept. 21 settlement between Paramount and 12 state attorneys general. Regulators in 68 jurisdictions had already cleared the merger, and the U.S. Department of Justice approved it without conditions. A coalition opposed to the deal gathered more than 5,700 signatories from actors, filmmakers and industry workers.
Paramount’s common stock moves from Nasdaq to the New York Stock Exchange under the new symbol SKYD. Ellison will co-lead the business with Ynon Kreiz, the former Mattel chief recruited as co-CEO.
The numbers behind the screen
- $111 billion: the value of the merger, the biggest in Hollywood history.
- More than $80 billion: estimated net debt, with annual interest above $6 billion.
- $6 billion: the cost-savings target executives have set for the combined company.
- 200 million-plus: combined subscribers for HBO Max and Paramount+, which will stay separate for now.
- $300 million: additional annual U.S. film production spending required under the settlement, above the studios’ 2025 level.
Leadership and the next integration test
Warner Bros. film co-heads Michael De Luca and Pamela Abdy will leave after closing, while Paramount film heads Dana Goldberg and Josh Greenstein are positioned to oversee both studios. Casey Bloys is set to run the combined streaming business after Paramount+ chief Cindy Holland stepped down.
Outgoing Warner Bros. Discovery chief David Zaslav is expected to collect at least $550 million in stock and cash. Ellison pursued WBD through eight rejections and outbid Netflix in February with a $31 per share offer.
Debt is the real storyline
“The biggest hurdle and the biggest thing we’re going to be keeping our eye on is integration and execution,” said Jawad Hussain, managing director at S&P Global.
Skydance must reduce leverage quickly while preserving creative output. Professor Tammy Madsen of Santa Clara University warned that cutting too aggressively in creative areas could destroy the value the merger is meant to capture. Under the settlement, CNN and CBS News will operate with a news editorial independence board that includes state representatives, a condition critics have called toothless.
Los Angeles County has estimated the merger could eliminate 4,500 film and TV jobs in Los Angeles over three years, with layoffs expected in waves through 2027. Ellison is expected to hold a town hall with employees on Oct. 6.
Source: Variety
