Skydance Completes $110 Billion Warner Bros. Deal, Faces $80 Billion Debt Load

Insider Monkey·8 Oct 2026·

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M&A · Partnership Corporate ActionSKYD ±

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Summary · why it matters

Skydance Corporation completed its acquisition of Warner Bros. Discovery on October 6, creating a combined media group spanning HBO, CBS, CNN, Paramount+, HBO Max, and major Hollywood franchises. The combined businesses generated roughly $65 billion of revenue over the previous year and counted more than 200 million direct-to-consumer subscribers. The deal required more than $50 billion in borrowing, leaving the company with about $80 billion of debt, and S&P estimated leverage could initially reach 7.6 times and remain elevated through 2027. Management is targeting at least $6 billion of run-rate synergies within three years, net leverage of 3.75 times in 2028 and 3.0 times in 2029, mid-single-digit revenue growth through 2030, an adjusted EBITDA margin in the mid-20% range, and more than $10 billion of free cash flow by 2030. A settlement with states that challenged the merger also requires at least 30 theatrical releases annually for the first two years and 32 annually for the following three years, plus at least $1.5 billion in additional U.S. production spending over five years, limiting how aggressively management can cut costs toward the $6 billion target.

Skydance Corporation ±

Paramount Skydance Corporation ±

Warner Bros Discovery Inc ±