PARAMOUNT SKYDANCE $110B WARNER BROS MERGER CLEARED — JUDGE APPROVES DEAL, CLOSES OCTOBER 6

The Paramount Skydance takeover of Warner Bros. Discovery is cleared to close. The $110 billion megadeal — the biggest Hollywood consolidation in decades — won final court approval on September 30, when a federal judge signed off on the antitrust settlement that had kept the transaction on ice.

With the ruling in place, the deal is set to close on Tuesday, October 6, creating a new entertainment giant that unites two of the most storied studios in the world under one roof. The combined company will be led by co-CEOs David Ellison and Ynon Kreiz.

Image: Nielsoncaetanosalmeron / Wikimedia Commons, CC BY 4.0

The ruling

U.S. District Judge Araceli Martínez-Olguín approved a consent decree on September 30, 2026, resolving the antitrust lawsuit filed by California and 11 other states over the proposed combination.

The settlement lifted the no-close order that had barred the companies from completing the merger, removing the final legal obstacle and paving the way for the deal to close on Tuesday, October 6.

Deal terms

Price: $31 per share in cash, plus a daily ticking fee that began October 1 — about $81 billion in equity value and about $110 billion in enterprise value.

Closes: Tuesday, October 6, 2026.

Ticker: Warner Bros. Discovery Class B shares move from Nasdaq to the New York Stock Exchange under the ticker SKYD; regular-way trading opens October 6. WBD exits the S&P 500 and the Nasdaq 100.

Co-CEOs: David Ellison and Ynon Kreiz.

Financing: $47 billion in equity financing from the Ellison family and RedBird Capital Partners. The definitive agreement was signed in February 2026, with Paramount Skydance outbidding Netflix for Warner Bros. Discovery.

Theatrical commitment: At least 30 US theatrical films per year for the first two years, and at least 32 per year for the following three years.

US production spend: $300M+ per year in additional US film and TV production spending for five years, plus provisions on cable negotiations and news operations.

What it means for Hollywood

The new parent company, to be called Skydance Corporation, brings together Paramount Pictures, Warner Bros. Pictures, CBS, CBS News, CNN, HBO, HBO Max, Paramount+, and Discovery — a single portfolio spanning film, broadcast, news, premium cable, and streaming. It is the largest studio consolidation Hollywood has seen in decades.

The combined studio slate will be enormous, from Paramount Pictures — which is reviving its franchises, as Bradley Cooper cast as Duke in Paramount's new G.I. Joe movie shows — to Warner Bros. Pictures, whose The Cat in the Hat (2026) movie — Warner Bros. Animation's first feature marks a new chapter for its animation division. On the exhibition front, Tom Cruise's Digger hits theaters — critics divided is exactly the kind of big-screen event the new company has pledged to keep making.

Frequently asked questions

When does the merger close?
The deal is expected to close on Tuesday, October 6, 2026, after the court's September 30 approval lifted the no-close order.

How much is the deal worth?
$31 per share in cash — about $81 billion in equity value and about $110 billion in enterprise value — plus a daily ticking fee that started October 1.

Why did the states sue?
California and 11 other states filed an antitrust lawsuit arguing the combination would reduce competition in entertainment. The September 30 consent decree settled the case with five years of commitments on theatrical output, production spending, cable negotiations, and news operations.

What happens to CNN and HBO Max?
CNN, HBO, and HBO Max join CBS, CBS News, Paramount+, and Discovery under the new Skydance Corporation. According to reports, the settlement includes provisions covering news operations.