Ellisons put ~$17B to back Paramount’s $110B Warner Bros. deal (SKYD:NYSE)

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.

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.

David Ellison has completed an $111 billion deal to merge Paramount Skydance and Warner Bros Discovery, gaining control of major entertainment and news assets. He now faces the challenge of managing the combined company. According to the Financial Times, the deal includes assets like HBO, Warner Bros, CNN, CBS, and Paramount Pictures.