Paramount Completes $110 Billion Warner Acquisition, Creating New Company Skydance

ロイター··US·Read original
4▲2 ▼0Impact / 5
Summary · why it matters

U.S. media giant Paramount Skydance announced on the 6th that its massive $110 billion acquisition of Warner Bros. Discovery has closed. The deal creates a new company, Skydance, with CEO David Ellison at the helm of one of the world's largest entertainment companies. Shares of the combined company moved from Nasdaq to the New York Stock Exchange on the 6th and began trading under the ticker symbol SKYD. The studio behind Mission: Impossible and Harry Potter will be combined with major television and streaming services including CBS News, CNN News, Paramount+, and HBO Max. However, the new company is expected to carry roughly $80 billion in debt, and Ellison will be tasked with expanding the streaming business, maintaining cash flow from the cable network operations, and improving the performance of theatrically released films. Analysts at research firm MoffettNathanson expect the company's earnings before interest, taxes, depreciation, and amortization to rise to $16 billion in 2028 and $19 billion in 2030, with revenue reaching about $67 billion in 2028 and about $70 billion in 2030. Skydance has committed to producing at least 30 films a year in the first two years after the acquisition closes, and 32 films a year over the following three years.

Impact on assets 2

Communication Services▲
Paramount Skydance Corporation
PSKY
▲ PositiveCapitalrelevance

Paramount Skydance completed its $110 billion acquisition of Warner Bros. Discovery, creating a new combined entertainment company trading as SKYD.

Warner Bros Discovery Inc
WBD
▲ PositiveCapitalrelevance

Warner Bros. Discovery was acquired by Paramount Skydance in a $110 billion deal that has now closed.

Off-coverage companies 1

MoffettNathansoni
Private± Mixedrelevance