Paramount Closes Warner Bros. Discovery Deal, Creating Skydance

Paramount completed its acquisition of Warner Bros. Discovery on October 6, 2026, creating a combined company named Skydance that brings a games portfolio including Mortal Kombat and Hogwarts Legacy into the same company as Paramount Games Studio, the gaming division it formed in June 2026.

The transaction closed following receipt of all required regulatory approvals under the merger agreement. Under its terms, WBD shareholders received $31.01666668 in cash per share. WBD shares ceased trading on Nasdaq effective October 6, and Skydance Class B shares began trading on the New York Stock Exchange the same day.

The company said the transaction received unanimous approval from competition authorities covering nearly 70 jurisdictions worldwide. The deal included $47 billion of new equity investment in Class B common stock, priced at $12.00 per share and led by the Ellison Family, RedBird Capital Partners, Public Investment Fund, L’IMAD, Qatar Investment Authority and LionTree. Debt financing was led by Bank of America, Citigroup and Apollo. The Ellison Family holds the largest equity stake in Skydance, and the Ellison Family and RedBird together are the sole holders of the Class A common stock, including 100% of the combined company’s voting shares.

Skydance said it is one of the largest media and entertainment companies in the world, with nearly $70 billion in revenue, and is targeting more than $6 billion in run-rate synergies over the next three years, drawn primarily from technology, integration and procurement, marketing and real estate rationalization. The company said it expects to generate more than $10 billion in free cash flow by 2030, aims to reduce net leverage to its 3.0x target by the end of 2029, and reported pro forma content spend of more than $30 billion for the last twelve-month period.

The combined company committed to releasing at least 30 theatrical films annually, each with a minimum 45-day theatrical window, and said it already has more than 180 television shows, more than 200 million streaming subscribers across platforms and audiences in more than 200 countries and territories. Skydance described a franchise portfolio spanning Top Gun and Harry Potter to White Lotus and SpongeBob SquarePants, operating across three business segments: Studios, Direct-to-Consumer and TV Media.

The Games Portfolios Under One Company

In a CEO Leadership Team announcement dated October 5, 2026, the company named JB Perrette as Co-Chair & Chief Business Officer of Skydance DTC and Skydance TV. His official bio states that he most recently served as CEO and President of Global Streaming and Games for Warner Bros. Discovery, where he oversaw the company’s games portfolio, including titles such as Mortal Kombat and Hogwarts Legacy. The bio credits Perrette with leading the global rollout of HBO Max to more than 130 markets and spearheading a $4 billion-plus turnaround in profitability.

The same release states that Peter Safran, as Co-Chairman of DC Studios alongside James Gunn, will lead the strategic and creative direction of the DC Universe across film, television, animation, themed entertainment and gaming.

Paramount Games Studio’s Formation and Slate

Paramount announced the formation of Paramount Games Studio on June 4, 2026, a single division consolidating all Paramount and Skydance gaming studios, including Skydance Interactive and Skydance New Media. Tony Driscoll was named President of Paramount Games Studio while continuing as Executive Vice President of Corporate Strategy and Development.

In that announcement, Driscoll said the launch marked a shift in how the company views games, calling them “a core pillar of our content strategy alongside film, television and streaming.” His background includes executive roles at Epic Games, where he built the IP Partner Program behind how major brands appear inside Fortnite, as well as roles at Warner Bros., AT&T and Walt Disney Imagineering, where he began his career.

The studio’s executive bench includes Dan Prigg as Executive Vice President, Head of Games; Shawn Kittelsen as Senior Vice President, Head of Creative & Production, whose writing credits include Mortal Kombat 11 and Injustice 2 for NetherRealm Studios and WB Games; Andrea Silvers as Senior Vice President of Marketing and Communications; Kara Bilkiss as Senior Vice President of Business Development & Licensing; and Ray Davis as Senior Vice President of Engineering.

Paramount Games’ official site lists TMNT: The Last Ronin, Avatar Legends: The Fighting Game and Battlefield 6: Top Gun as coming soon, alongside a catalog that includes Marvel 1943: Rise of Hydra, Skydance’s Behemoth, The Walking Dead: Saints & Sinners, SpongeBob titles and Star Trek Fleet Command.

Leadership and Board of the Combined Company

David Ellison serves as Chairman and Chief Executive Officer of Skydance and Ynon Kreiz as Co-CEO, with Andy Gordon as President. The wider CEO Leadership Team named on October 5 includes Casey Bloys, George Cheeks, Dana Goldberg, Josh Greenstein, James Gunn, Perrette and Safran, each reporting directly to the CEOs.

On October 6, Skydance also announced its board of directors, adding Laurene Powell Jobs and Bobby Kotick as independent directors, Kreiz as a director and former UK Prime Minister Tony Blair as a board advisor, effective immediately. The company described Kotick as the founder and 32-year chief executive of Activision, whose tenure culminated in the $68.7 billion sale of Activision Blizzard to Microsoft, a transaction the release called the largest in video game industry history.

“Bobby led a global entertainment company through three decades of sustained growth, and he brings real perspective on building enduring franchises and connecting with fans,” Ellison said in a statement.

The company said a complete list of its new Executive Leadership Team will be issued soon after the close.