Paramount Closes Warner Bros. Deal as Skydance and Plans a Single Streamer
Skydance, the new name of the combined Paramount and Warner Bros. Discovery, has finalized its purchase and renamed the company, effective Tuesday. Warner Bros. Discovery shareholders received approximately $31.02 per share in cash.
What's New with Skydance?
Skydance owns two major film studios, Paramount Pictures and Warner Bros., along with HBO Max, Paramount+, CBS, HBO, CNN, and CBS News. Its sports arms include CBS Sports and TNT Sports. The company plans to merge its streaming products into a single service, though no timeline has been provided. Skydance also owns Discovery+ and Pluto TV.
AI and Creative Technology
In a "Day 1" memo to staff, David Ellison and Ynon Kreiz, the CEO and co-CEO, outlined four priorities for the company. One is to become the most technologically capable media company, leveraging AI to enhance creativity and productivity. They emphasized that technology should serve art, not the other way around.
Content and Film Commitments
Skydance promises at least 30 films a year, each with a theatrical window of at least 45 days.
The Road to Skydance
The deal's journey began in February when Paramount agreed to acquire Warner Bros. Discovery for $31 per share. It faced legal challenges, including a lawsuit from 12 states, but the deal was approved after settlements and a Supreme Court ruling.
Leadership and Financing
Skydance named its leadership team on Monday. Key appointments include Casey Bloys leading streaming and TV content and George Cheeks. On Tuesday, Laurene Powell Jobs and Activision founder Bobby Kotick joined the board, with Tony Blair as an adviser.
The company financed the deal with a mix of secured notes, a term loan, and targeting at least $6 billion in annual cost savings within three years. It aims to reduce net debt to three times its core earnings by the end of 2029.
Job Changes
The memo acknowledged that integrating two companies would bring changes and difficult decisions affecting the workforce. Ellison addressed staff at a town hall, according to audio obtained by Business Insider.