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Paramount-Warner merger to launch on New York Stock Exchange as Skydance
The company to be formed through the merger of Paramount Skydance and Warner Bros. Discovery is expected to begin operations as Skydance Corporation on October 6. Skydance shares are planned to begin trading on the New York Stock Exchange under the ticker SKYD the same day.
The transaction combining Paramount Skydance and Warner Bros. Discovery is set to close on October 6, subject to the completion of the required closing conditions. The company formed after the merger will be named Skydance Corporation, and its shares will trade on the New York Stock Exchange instead of Nasdaq.
Skydance shares are planned to begin trading on the New York Stock Exchange under the ticker SKYD, while the existing PSKY ticker is set to be retired. According to company documents, the transaction values Warner Bros. Discovery at approximately $110 billion in enterprise value.
Two studios under one roof
The new corporate structure, which will take its name from the film and television production company founded by David Ellison, will sit above the Paramount and Warner Bros. brands. Paramount Pictures and Warner Bros. will continue using their existing names and established brands.
The combined group's streaming services will include Paramount+ and HBO Max. Its television operations will cover CBS, CNN, MTV, TBS, Comedy Central and Food Network.
The new company's content library will include Harry Potter, The Lord of the Rings, Game of Thrones, the DC Universe, Yellowstone, Mission: Impossible, Top Gun and Nickelodeon's children's programs.
Management and financing structure
David Ellison will serve as chairman and chief executive of the combined group. Ynon Kreiz, a former Mattel executive, is expected to join the company as co-CEO and begin his duties on October 5.
The transaction will be financed through equity, loans, bonds and external investments. Paramount issued more than $41 billion in dollar-denominated bonds and €885 million in euro-denominated bonds. The company also secured new term loans totaling $8.5 billion and €850 million.
Affiliates of Oracle founder Larry Ellison have committed up to $46.7 billion in equity financing. Investment vehicles linked to the sovereign wealth funds of Saudi Arabia, Qatar and the United Arab Emirates, along with RedBird Capital Partners, are also participating in the financing.
Acquisition competition comes to an end
Control of the company will rest with David Ellison, Larry Ellison and RedBird founder Gerry Cardinale. The combined group will begin operations with one of the entertainment industry's largest portfolios of studios, television networks and intellectual property.
Integrating the two major businesses and managing the heavy debt load will be among the new group's main challenges. The transaction also brings to an end the ongoing competition to acquire Warner Bros. Discovery.
Paramount won the bidding by outmaneuvering Netflix, which had reached an agreement to acquire Warner Bros.' studio and streaming operations. A federal judge also removed one of the final obstacles to the transaction on September 30.
The judge approved a settlement between Paramount and 12 U.S. states that had sought to block the merger on the grounds that it violated antitrust rules.
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