Key facts
- Paramount acquired Warner Bros. Discovery for $111 billion.
- The combined entity is now named Skydance.
- The deal was finalized on October 6.
- Paramount's offer was initially $108 billion, later increased to $31 per share.
- Netflix withdrew its $82.7 billion bid for Warner Bros. Discovery's studios and streaming assets.
- The combined company will have annual revenue of nearly $70 billion.
Paramount has officially completed its $111 billion acquisition of Warner Bros. Discovery (WBD), a deal that faced significant regulatory scrutiny and concerns over the combined entity's substantial debt load. The acquisition, finalized on October 6, creates a new corporation named Skydance.
The journey to this merger began in October 2025 when WBD started exploring a sale after receiving unsolicited interest. Initially, Netflix emerged as a contender, offering $82.7 billion for WBD's studios and streaming assets. However, Paramount persisted, eventually increasing its bid to $31 per share for all of WBD's assets, prompting Netflix to withdraw its offer.
Paramount's bid, backed by significant financial commitments including $54 billion in debt from major banks and $45.7 billion in equity from Larry Ellison, was approved by the U.S. Department of Justice in June. Despite this, a coalition of 12 state attorneys general filed a lawsuit in July to block the merger, citing concerns about stifled competition and potential price increases for consumers. A federal judge initially paused the deal but ultimately approved it in late September, paving the way for the official closing on October 6.
The combined Skydance entity is projected to have annual revenues of nearly $70 billion, and its streaming services, including Paramount+, HBO Max, and Discovery+, are expected to be combined eventually. The deal also involves Paramount assuming WBD's approximately $33 billion in debt, adding to its own existing debt burden. Concerns have also been raised about potential job reductions and the influence of David Ellison's ownership on news divisions critical of Donald Trump.