The $111 billion merger bringing together Paramount and Warner Bros. Discovery is scheduled to close on Oct. 6.
David Ellison is set to close his $111 billion acquisition of Warner Bros. Discovery on Tuesday, Oct. 6, uniting two Hollywood studios into an entertainment giant named Skydance Corp.
Paramount and Warner Bros. Discovery confirmed the closing date after U.S. District Court Judge Araceli Martínez-Olguin approved an antitrust settlement on Sept. 30. Once the deal is completed, Paramount’s common stock will transfer from Nasdaq to the New York Stock Exchange, swapping its ticker symbol from “PSKY” to “SKYD”.
Overcoming regulatory hurdles
The merger cleared extensive regulatory reviews before reaching final approval. The Justice Department cleared the transaction in June without imposing conditions, and regulators across 68 jurisdictions worldwide approved the deal. However, 12 Democratic state attorneys general, led by California Attorney General Rob Bonta, challenged the purchase in federal court over concerns about power in theatrical and cable markets.
Paramount and the state attorneys general reached a settlement on Sept. 21 after Ellison signaled in August that he would move Paramount out of California if the lawsuit blocked the transaction. The #BlockTheMerger coalition, backed by more than 5,700 actors, filmmakers and industry workers, urged Martínez-Olguin to reject the agreement. The judge approved the consent decree, writing that it represented a compromise saving the risk, time and expense of a trial that had been scheduled for March 2027.
Ellison secured Warner Bros. Discovery after the company’s board turned down eight earlier takeover attempts. He eventually surpassed a competing bid from Netflix in February with a $31-per-share offer, which was nearly two and a half times the stock price prior to the bidding contest.
Leadership and next steps
Skydance will be led jointly by Ellison and former Mattel chief executive Ynon Kreiz, who was hired as co-CEO. All businesses across the combined company will report to both executives. Kreiz, who led Mattel for eight years and oversaw the release of the 2023 movie “Barbie,” receives a signing bonus of $31.5 million in fully vested stock upon closing.
The new leadership faces the challenge of managing a heavy debt burden while integrating operations across film, streaming and television. Ellison plans to hold an employee town hall meeting on Tuesday, followed by a virtual press briefing with Kreiz and executive leadership scheduled for 7 p.m. Eastern time on Oct. 6.
