Ellisons invest $17 billion in Warner-Paramount-Skydance merger

David Ellison and his family invested ~$17B in Paramount Skydance Corp.'s acquisition of Warner Bros. Discovery Inc., acquiring 1.4B shares at $12 each. The deal included $47B in new equity. Skydance shares fell 7% to $8.89 on the news.

David Ellison and his family invested approximately $17 billion to support Paramount Skydance Corp.'s (SKYD) acquisition of Warner Bros. Discovery Inc., according to media reports. The investment includes an estimated 1.4 billion shares.

The Ellison family invested $17 billion in Warner Bros. Discovery's new owner, Paramount Skydance, acquiring 1.4 billion shares at $12 each. The merged entity, Skydance Corp., sees the Ellison family as the largest shareholder. The $110 billion acquisition included $47 billion in equity. Shares fell 9% post-merger.

Paramount Skydance, formed from the merger of Paramount Skydance and Warner Bros. Discovery, plans to bundle HBO Max and Paramount+ first, then merge them into a single app. Executives did not discuss Discovery+ or its future. The company has already integrated technology platforms of Paramount+, BET+, and Pluto TV, with consolidation expected to complete within a year. The combined services have over 200 million global subscribers.

David Ellison and family invested $17 billion in Warner Bros. Discovery's acquisition by Paramount Global, subscribing to 1.4 billion shares at $12 each. The merged entity is now Skydance Corp, but its stock has fallen 9% since the merger. The $110 billion deal includes $47 billion in equity from various investors.

Warner Bros. water tower repainted to include 'A Skydance Corporation' after the merger with Paramount closed, forming a large entertainment company. Skydance (SKYD) shares began trading on the NYSE. Concerns over streaming costs and union pressures were addressed, and legal barriers were removed.