Paramount and Warner Bros. Studios Merger to Be Named Skydance Corporation

The newly formed media conglomerate resulting from the merger of Paramount Studios and Warner Bros. Discovery will operate under the name Skydance Corporation, according to the incoming CEO, David Ellison. The deal, valued at approximately $111 billion, is expected to officially close on October 6. David Ellison will serve as the chairman and CEO of the merged company. He will be joined by Israeli-American businessman Ynon Kreiz, former CEO of Mattel, as co-CEO, effective October 5. Upon completion of the merger, the company will move its stock listing from Nasdaq to the New York Stock Exchange, trading under the symbol "SKYD".

The new corporation will unite two major Hollywood film studios and the streaming services HBO Max and Paramount+. Its asset portfolio includes leading television networks such as CBS, CNN, MTV, and Comedy Central. The brands and franchises under its management will encompass "Harry Potter," "The Lord of the Rings," "Game of Thrones," DC Universe content, and the "Mission: Impossible" and "Top Gun" film series.

The merger proceeds after a federal court approved an antitrust settlement earlier in the week, resolving a lawsuit filed by 12 U.S. states. The financial structure of the transaction involves significant debt financing and bond issuance, with the merged entity projected to begin operations with over $80 billion in accumulated debt. Control of the company will be held by David Ellison, his father Larry Ellison (founder of Oracle), and Gerry Cardinale of RedBird Capital. Larry Ellison provided a personal guarantee for $46.7 billion in equity financing.

Additionally, sovereign wealth funds from Saudi Arabia, Qatar, and the United Arab Emirates have invested approximately $24 billion in the deal, securing a 38.5% stake in the merged company. The legal obstacle to the merger was removed when Ynon Kreiz was appointed co-CEO of the Paramount-Warner conglomerate.