From Los Angeles Business Journal · Monee Fields-White · · 1m 20s
Ellison Seals Warner Buy
David Ellison completes $110 billion Warner Bros. Discovery takeover, creating Skydance Corp.
In brief
David Ellison completes $110 billion Warner Bros. Discovery takeover, creating Skydance Corp. David Ellison finalized a $110 billion merger with Warner Bros. Discovery, forming Skydance Corp. to combine Paramount and Warner Bros. studios under one Hollywood-based owner. Originally reported by Los Angeles Business…
Deal closes
David Ellison finalized a $110 billion merger with Warner Bros. Discovery, creating Skydance Corp. to combine Paramount and Warner Bros. studios under one Hollywood-based owner.
“David Ellison closed his roughly $110 billion takeover of Warner Bros. Discovery Inc. Oct. 6, putting the Paramount Skydance and Warner Bros. studios under a single Hollywood-based owner after a nearly yearlong battle.”
New ticker
Skydance Corp. began trading on the New York Stock Exchange under the ticker SKYD, replacing Paramount Skydance Corp.'s Nasdaq listing.
“The combined company, renamed Skydance Corp., began trading on the New York Stock Exchange under the ticker SKYD, replacing Paramount Skydance Corp.'s Nasdaq listing.”
Share price
Warner shareholders receive $31 a share in cash plus a daily ticking fee, bringing the total to about $31.02.
“Warner shareholders receive $31 a share in cash plus a daily ticking fee, bringing the total to about $31.02.”
Ellison's vision
Ellison called the closing a 'historic day,' saying the company now has the talent, resources and reach to compete.
“Ellison called the closing a 'historic day,' saying the company now has the talent, resources and reach to compete.”
New leadership
Ellison will serve as chair and co-chief executive alongside Ynon Kreiz, the former Mattel Inc. chief executive who officially joined Oct. 5.
“Ellison will serve as chair and co-chief executive alongside Ynon Kreiz, the former Mattel Inc. chief executive who officially joined Oct. 5.”
Debt and cuts
Skydance starts out with nearly $80 billion in debt, projecting at least $6 billion in cost savings through layoffs.
“Skydance starts out with nearly $80 billion in debt, projecting at least $6 billion in cost savings through layoffs.”
Legal settlement
The company must spend at least $1.5 billion on U.S. film and television production over five years and release at least 30 films a year for two years.
“The company must spend at least an additional $1.5 billion on U.S. film and television production over five years and release at least 30 films a year for two years, then 32 annually for three more.”
The big picture
David Ellison finalized a $110 billion merger with Warner Bros. Discovery, forming Skydance Corp. to combine Paramount and Warner Bros. studios under one Hollywood-based owner.
