Skydance Corporation has completed its acquisition of Warner Bros. Discovery, creating a combined global media and entertainment company operating under the Skydance name.
The transaction closed on October 6 following required regulatory approvals and other customary closing conditions. Warner Bros. Discovery became a wholly owned subsidiary of Skydance, with WBD shareholders receiving $31.01666668 in cash for each eligible share. The SEC filing puts the aggregate merger consideration payable by Skydance at approximately $78 billion, funded through a combination of equity and debt financing.
The transaction included $47 billion of new equity investment led by the Ellison Family, RedBird Capital Partners, Public Investment Fund, L'IMAD, Qatar Investment Authority and LionTree. Bank of America, Citigroup and Apollo led the debt financing.
The combination brings together two major film studios, two global streaming services and television assets including CBS, HBO and Paramount's and WBD's cable networks. The portfolio also spans CBS News and CNN, CBS Sports and TNT Sports, alongside extensive film and television libraries and franchises.
The combined company has nearly $70 billion in revenue and more than 200 million streaming subscribers across its platforms. Skydance plans annual output of at least 30 theatrical films and has more than 180 television shows and series, while its pro forma content spending exceeded $30 billion over the last 12-month period.
Skydance is targeting more than $6 billion of run-rate synergies within three years, primarily through technology, integration and procurement, marketing and real-estate rationalisation. The company also expects to generate more than $10 billion in free cash flow by 2030 and is targeting net leverage of 3.0x by the end of 2029.
Buyer / Parties: Skydance Corporation
Target: Warner Bros. Discovery, Inc.
Sector: Media and entertainment
Deal type: Acquisition / merger
Value: Approximately $78 billion aggregate merger consideration
Geography: United States / global operations
Identified advisers: Centerview Partners, RedBird Advisors, Bank of America Securities, Citi, M. Klein & Company, LionTree Advisors, Cravath Swaine & Moore, Latham & Watkins, Allen & Company, J.P. Morgan, Evercore, Wachtell Lipton Rosen & Katz, Debevoise & Plimpton, Barclays Capital and Cleary Gottlieb Steen & Hamilton.
The acquisition combines Skydance and Warner Bros. Discovery's film, television, streaming, news and sports operations at significantly greater scale. The combined company plans to unify its direct-to-consumer streaming products into a single service over time while using integration and operating efficiencies to pursue its $6 billion-plus run-rate synergy target.
Paramount / Skydance: Centerview Partners and RedBird Advisors acted as lead financial advisers. Bank of America Securities, Citi, M. Klein & Company and LionTree Advisors also acted as financial advisers. Cravath Swaine & Moore and Latham & Watkins acted as legal counsel. Latham & Watkins also acted as legal counsel to the investor consortium, including the Ellison Family.
Warner Bros. Discovery: Allen & Company, J.P. Morgan and Evercore served as financial advisers. Wachtell Lipton Rosen & Katz and Debevoise & Plimpton served as legal counsel.
Paramount Special Committee: Barclays Capital acted as financial adviser to the Special Committee of Paramount's board of directors. Cleary Gottlieb Steen & Hamilton served as legal counsel.
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