From Adweek · Mark Mwachiro · · 1m 10s
Skydance Controls Paramount and WBD
Skydance merger creates $80bn debt and layoffs after Paramount-WBD unification.
In brief
Skydance merger creates $80bn debt and layoffs after Paramount-WBD unification. Skydance, formed by merging Paramount and Warner Bros. Discovery, faces $80 billion debt and workforce cuts to consolidate operations. Originally reported by Adweek.
Skydance merger completes
David Ellison merged Paramount and Warner Bros. Discovery under Skydance, creating a new conglomerate.
Paramount and WBD assets unified
Paramount Studios, Warner Bros. Studios, HBO, HBO Max, Paramount+, CBS, and other linear channels now fall under one umbrella.
WBD initially sought Netflix acquisition
WBD tried to acquire Warner Bros. Studios from Netflix in early 2026 but was wrestled away by Ellison.
Skydance offers $31 per share
Paramount provided a $31 per share all-cash bid to WBD, which WBD called a 'superior' offer.
Lawsuits blocked merger temporarily
State attorneys general and the Writers Guild of America sued to block the merger, which was settled in September with production guarantees and editorial independence.
Skydance faces $80bn debt and layoffs
The new conglomerate has $80 billion in debt and will cut staff to pay it down, as Ellison and Kreiz acknowledged future workforce changes.
The key point
Skydance, formed by merging Paramount and Warner Bros. Discovery, faces $80 billion debt and workforce cuts to consolidate operations.
