Skydance completes acquisition of Warner Bros. Discovery
Skydance Corporation has completed its acquisition of Warner Bros. Discovery (WBD), creating a combined global media and entertainment company named Skydance.
The transaction brings together two major film studios, two global streaming services, a television portfolio including CBS and HBO, Paramount’s and WBD’s cable networks, CBS News and CNN, live sports including CBS Sports and TNT Sports, as well as an extensive library of content, brands and franchises.
The transaction closed following all required regulatory approvals and the satisfaction of customary closing conditions. Skydance Class B shares began trading on the New York Stock Exchange on October 6 under the ticker SKYD, while WBD shares ceased trading on Nasdaq. Under the agreement, WBD shareholders received $31.01666668 in cash per share.
Skydance said the combined company will focus on creativity and technology, with storytelling at the centre of its growth strategy. It will deliver at least 30 theatrical films annually, each with a minimum 45-day theatrical window, and already has more than 180 television shows.
The company has more than 200 million streaming subscribers across its platforms and a portfolio of franchises including Top Gun, Harry Potter, The White Lotus and SpongeBob SquarePants. Skydance will also continue to commission content from independent studios and license its own content to third parties.
The company expects to generate more than $10 billion in free cash flow by 2030 and is targeting more than $6 billion in run-rate synergies over the next three years. Its combined portfolio will eventually include a unified direct-to-consumer streaming service.
Skydance said the transaction received unanimous approval from competition authorities covering nearly 70 jurisdictions worldwide. The combined company has nearly $70 billion in revenue and will operate across three business segments: Studios, Direct-to-Consumer and TV Media.