Paramount has officially completed its acquisition of Warner Bros. Discovery for $111 billion. The deal, which concluded on October 6, resulted in the rebranding of the combined entity to Skydance. The new corporation is projected to generate nearly $70 billion in annual revenue.
The acquisition process involved a competitive bidding war against Netflix, which initially offered $82.7 billion for specific assets. Paramount secured the deal by raising its bid to $31 per share in February, leading Netflix to withdraw from negotiations. Paramount will assume $33 billion in existing debt from Warner Bros. Discovery.
Financing for the transaction includes a $54 billion debt commitment from Bank of America, Merrill Lynch, Citi, and Apollo Global Management, alongside $45.7 billion in equity provided by Larry Ellison. The agreement faced significant regulatory scrutiny and a legal challenge from a coalition of 12 state attorneys general.
Despite the U.S. Department of Justice approving the merger in June, a federal judge temporarily paused the proceedings following a lawsuit filed on July 13. The legal hurdle was cleared in late September, allowing the transition to proceed. The company plans to consolidate its streaming services, including Paramount+, HBO Max, and Discovery+.
