Paramount completes $111 billion acquisition of Warner Bros. Discovery
Paramount completed its acquisition of Warner Bros. Discovery on October 6 after winning a bidding contest against Netflix. The transaction, valued at $111 billion and covering WBD’s studios, HBO, streaming services, games and television networks, followed U.S. regulatory approval and litigation by state attorneys general. The merged business will operate under the Skydance name and is expected to generate annual revenue of $70 billion.
Why it matters
The deal transfers Warner Bros. Discovery’s assets into Paramount’s combined business and adds about $33 billion of WBD debt to Paramount’s obligations. Netflix withdrew after deciding that matching Paramount’s final offer was no longer financially attractive, leaving it without the targeted studios and streaming assets.
Key facts
- 1The acquisition closed on October 6 after a federal judge approved the transaction in late September. techcrunch.com
- 2Paramount’s final bid was $111 billion for all of Warner Bros. Discovery’s assets. mezha.net
- 3Paramount is taking on about $33 billion of Warner Bros. Discovery debt. mezha.net
- 4The financing plan included $54 billion in borrowing arranged by Bank of America, Merrill Lynch, Citi and Apollo Global Management, plus $45.7 billion in equity from Larry Ellison. mezha.net
- 5The combined company was renamed Skydance after closing and is expected to have annual revenue of almost $70 billion. mezha.net
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.