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Paramount Skydance has completed its purchase of Warner Bros. Discovery, creating a new media giant renamed Skydance that will trade under the symbol SKYD. The closing concludes a more-than-yearlong takeover bid marked by competing offers, litigation and a high‑stakes regulatory fight.
The deal’s origins
On June 9, 2025, Warner Bros. Discovery announced plans to split into two public companies — separating its studios and streaming business from its global cable networks. The move reflected mounting pressure across the industry as viewers shifted from linear TV to streaming.
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Paramount’s transformation accelerated on Aug. 7, 2025, when it closed a merger with Skydance, the studio headed by David Ellison. Within weeks Ellison pursued major content and sports rights, including a reported $7.7 billion acquisition of multiyear UFC rights from TKO Group, the rights to produce a film based on the Call of Duty franchise and a multiyear deal with the Duffer Brothers. Ellison framed those moves as part of a strategy to reshape entertainment for a streaming era.
Rivals enter the fray
Interest in WBD quickly drew other suitors. CNBC first reported on Sept. 11, 2025, that Paramount was preparing a bid, sending both companies’ shares higher.
In late September and early October, WBD rejected three takeover offers from Paramount Skydance. Paramount’s third bid, reported at slightly under $24 per share with about 80% cash, prompted a letter on Oct. 13 arguing the offer would deliver “superior value” compared with the company’s planned split.
By Oct. 21, WBD said it had received unsolicited interest and was open to a sale, with outlets naming Netflix and Comcast among potential buyers. In mid‑November, Comcast, Netflix and Paramount submitted formal proposals. Comcast and Netflix were reported to be targeting WBD’s film and streaming assets, while Paramount sought the entire company, including its linear channels.
Escalation and a bidding war
On Dec. 5, 2025, Netflix announced an agreement to buy WBD’s film and streaming operations in a transaction valued at nearly $83 billion on an enterprise basis, while WBD planned to spin off its TV networks to a separate entity. Paramount responded three days later, launching a hostile, all‑cash $30‑per‑share bid for the whole company.
WBD’s board rebuffed Paramount on Jan. 7, 2026 and reaffirmed its recommendation in favor of the Netflix arrangement. Paramount sued WBD and CEO David Zaslav on Jan. 12, seeking clearer disclosure about the sale process. Netflix then amended its offer on Jan. 20 to an all‑cash bid of $27.75 per share.
Paramount kept raising the stakes. On Feb. 10, 2026, it maintained a $30‑per‑share cash offer but added a “ticking fee” to compensate shareholders if regulatory delays prolonged closing and pledged to cover the $2.8 billion breakup fee owed to Netflix. A short waiver from Netflix on Feb. 17 reopened the possibility of talks.
Paramount increased its cash offer to $31 per share on Feb. 24. When Netflix declined to match that price two days later, Paramount and WBD signed a definitive merger agreement on Feb. 27. Shareholders approved the acquisition on April 23, 2026.
Regulatory hurdles and settlement
The transaction then faced heavy regulatory scrutiny. The U.S. Department of Justice granted approval on June 12, 2026, a pivotal step for the roughly $110 billion enterprise valuation of the deal.
Less than a month later, a coalition of state attorneys general led by California’s attorney general, Rob Bonta, filed suit to block the merger on antitrust grounds, warning it could lead to higher prices and lower‑quality content.
Paramount secured a win with European Union regulators on July 22, 2026, agreeing to divest its stake in United International Pictures in Europe and to avoid certain distribution arrangements with Universal for 10 years. Still, a temporary restraining order and the prospect of prolonged litigation pushed Paramount to announce a potential closing delay to as late as June 2027 on July 24.
Those objections were resolved with a settlement reached on Sept. 21, 2026, between Paramount and the state attorneys general. The terms included conditions on the number and budget levels of theatrical releases the combined company must produce.
New leadership and a new name
With regulatory obstacles cleared, Paramount named former Mattel CEO Ynon Kreiz co‑CEO alongside David Ellison on Sept. 30, 2026. Kreiz had been credited with steering Mattel’s expansion into entertainment.
In early October, Ellison said the merged company would be called Skydance, a structure meant to preserve the Paramount and Warner Bros. brands while operating under a unified corporate umbrella. The leadership team announced Oct. 5 included several high‑profile media executives to run news, content and sports divisions, and the acquisition formally closed on Oct. 6, 2026, creating the combined Skydance entity.
