Paramount Skydance and Warner Bros. Discovery close $110 billion merger

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Summary · why it matters

The $110 billion merger of Paramount Skydance and Warner Bros. Discovery is scheduled to close on Tuesday after Supreme Court Justice Elena Kagan denied a last-minute effort to halt the deal. The new company, known as Skydance, brings HBO Max and Paramount+ under one umbrella, roughly seven months after Paramount won a long bidding war for Warner Bros. over Netflix. Last February, Warner Bros.' board of directors deemed Paramount Skydance's $31-per-share proposal for the entire company superior to Netflix's offer. David Ellison will serve as co-CEO of Skydance alongside former Mattel CEO Ynon Kreiz, while Warner Bros. Discovery CEO David Zaslav will receive roughly $886.8 million. Weeks ago, Paramount reached a settlement with a dozen states, including California, which had sought to block the company's $111 billion acquisition of Warner Bros. on antitrust grounds; under the agreement, the combined company would pay $30 million for each movie short of releasing at least 30 films in theaters annually and could be forced to sell its 49% stake in Miramax if it misses the target.

Impact on assets 11

Communication Services▲
Paramount Skydance Corporation
PSKY
▲ PositiveCapitalrelevance

Paramount Skydance closes its $110B acquisition of Warner Bros. Discovery after the Supreme Court denied a last-minute halt.

Warner Bros Discovery Inc
WBD
▲ PositiveCapitalrelevance

Warner Bros. Discovery is acquired by Paramount Skydance in the $110B merger, with CEO Zaslav receiving ~$886.8M.

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Off-coverage companies 1

Miramaxi
Private± MixedRegulationrelevance

Settlement terms could force the combined company to sell its 49% Miramax stake if it misses the 30-films-a-year theatrical target.