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Freedom251 › Blog › Entertainment

Paramount-Warner Merger Closes: Skydance Takes Control in Deal Valued at Nearly $111B

By Freedom251 Team · · 4 min read

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Skydance completed its acquisition of Warner Bros. Discovery on October 6, 2026, bringing Warner’s studios, streaming services, news operations, sports assets and networks under the same corporate umbrella as Paramount’s. The Associated Press valued the acquisition at $81 billion excluding debt, or nearly $111 billion including debt—not $111 billion in cash paid to shareholders. The combined company is named Skydance.

What closed, and what changed for shareholders?

Skydance Corporation, formerly Paramount Skydance Corporation, completed the Warner Bros. Discovery (WBD) acquisition on October 6, 2026. In its October 6 SEC filing, WBD is identified as the surviving company in the merger and a wholly owned Skydance subsidiary. Skydance’s closing announcement says the combined company is named Skydance.

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WBD shareholders received $31.01666668 in cash per share. WBD shares ceased trading on Nasdaq, while Skydance Class B shares began trading on the New York Stock Exchange under the ticker SKYD, according to the SEC filing and Skydance’s announcement.

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Why is the deal described as both $81 billion and nearly $111 billion?

The figures use different measures. The Associated Press reported on October 6 that $81 billion was the acquisition value excluding debt; the nearly $111 billion figure includes billions of dollars in debt. The larger figure is therefore not the amount paid in cash to WBD shareholders.

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Reported figure What it describes Source and date
$81 billion Acquisition value excluding debt Associated Press, October 6, 2026
Nearly $111 billion Deal value including debt Associated Press, October 6, 2026
$31.01666668 per share Cash received by WBD shareholders for each share SEC filing and Skydance closing announcement, October 6, 2026

What does the combined company bring together?

The acquisition puts two major film studios and two global streaming services within Skydance, alongside CBS, HBO, cable networks, CBS News and CNN. The portfolio also includes sports properties such as CBS Sports and TNT Sports, plus extensive film and television libraries. Franchises named in closing coverage include Harry Potter, Barbie, Top Gun, Superman, Star Trek and SpongeBob SquarePants.

The scale is reflected in two different revenue measures. FactSet, as reported by the Associated Press on October 7, put the companies’ combined revenue at $65.3 billion for the 12 months ended in June, before the acquisition closed. Skydance described the post-acquisition company as having nearly $70 billion in revenue in its October 6 announcement. Those figures have different descriptions and should not be treated as a like-for-like audited forecast.

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What could the merger mean for streaming customers?

Skydance says its direct-to-consumer streaming products are expected to unify into a single service over time. That is a stated future plan, not a completed product change. In its October 6 consumer-impact coverage, the Associated Press reported that the new service’s name, launch timing, subscription price and effect on customer choice remained unresolved.

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David Ellison had previously said, “Our viewpoint is, HBO should stay HBO.” That remark signals his stated view about the HBO brand; it does not settle how HBO will be packaged, priced or distributed in a future service. Until the company announces those details, subscribers should not assume a particular launch date, bundle or price.

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What obligations came with regulatory approval?

The federal regulatory record and the state-court settlement are separate parts of the merger’s path to closing. On June 12, 2026, the U.S. Department of Justice Antitrust Division said its investigation found the proposed merger was not likely to harm competition or American consumers in streaming video on demand, linear television, or theatrical-film studio development, production or distribution. That is the DOJ’s assessment based on its investigation.

Twelve state attorneys general sued to block the deal. A federal judge approved a settlement on September 30, clearing the way for closing. The Associated Press reported that the settlement imposes the following commitments:

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Commitment Terms reported by the Associated Press
Theatrical releases At least 30 releases annually for each of the first two years, then at least 32 annually for the next three years; at least half must be produced or jointly produced by the company.
U.S. film production At least $1.5 billion in additional U.S. film-production spending over five years.
Worker support $47.5 million for training and career development for workers displaced by the merger, over five years.
Cable-channel negotiations Negotiations are to be conducted separately for five years.

The Associated Press also reported that failure to meet the film-output terms could trigger Miramax divestiture and payments to industry labor trusts. These are settlement remedies, not evidence that a breach has occurred.

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Are Skydance’s savings and debt targets guaranteed?

No. In its October 6 announcement, Skydance set a target of more than $6 billion in run-rate synergies within three years and a net-leverage target of 3.0x by the end of 2029. These are management goals, not realized savings or a completed reduction in debt.

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Skydance cautioned that expected synergies, integration outcomes, net leverage, free cash flow and other financial goals may not be achieved or may take longer than expected. The practical test is whether the company can integrate the businesses, deliver the promised savings and reduce debt while meeting the settlement’s production and worker-support commitments.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Entertainmentmedia mergersParamount+SkydancestreamingWarner Bros. Discovery

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