Paramount Skydance to close $110 B merger with Warner Bros. Discovery on Oct. 6, 2026
Paramount Skydance Corp. and Warner Bros. Discovery announced that their merger will be completed on October 6, 2026. Warner Bros. Discovery shareholders will receive cash of $31.00 per share, adjusted to $31.02 for accrued daily payments. Paramount Skydance shareholders will retain shares in the renamed entity SKYD, which will move to the NYSE and carry roughly $80 billion of debt. The deal was first disclosed in a merger agreement dated February 27, 2026.
Why it matters
The cash payment ends Warner Bros. Discovery investors' exposure to the combined company's high leverage, while former Paramount Skydance investors inherit the debt burden and a BB credit rating from S&P Global Ratings, which may affect the stock's valuation and future financing costs.
Key facts
- 1The merger is expected to close on October 6, 2026, subject to customary closing conditions. nickalive.net
- 2Warner Bros. Discovery shareholders will receive $31.00 per share in cash, or about $31.02 when daily accrued payments are included. 247wallst.com
- 3The transaction value is $110 billion. 247wallst.com
- 4Paramount Skydance will issue $41.4 billion of bonds and an $8.5 billion term loan to finance the deal. 247wallst.com
- 5The combined company is expected to carry approximately $80 billion of debt. 247wallst.com
- 6S&P Global Ratings gave the combined company a BB rating, below investment grade. 247wallst.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.