Paramount Skydance to Acquire WBD for $110B Enterprise Value, Issuing $47B in New Shares
Summary
Paramount Skydance (PSKY) has announced a definitive agreement to acquire Warner Bros. Discovery (WBD) for an enterprise value of $110 billion, with an equity value of $81 billion. This follows a prolonged pursuit by PSKY, including multiple tender offers and a proxy contest, culminating in an earlier announcement today that the acquisition was secured. The transaction is highly transformative for PSKY, as it involves issuing $47 billion in new Class B shares, which represents significant dilution for existing shareholders given PSKY's current market capitalization. The boards of both companies have unanimously approved the deal, which is not subject to any financing conditions, and is expected to yield over $6 billion in synergies. The transaction is anticipated to close in Q3 2026, with a shareholder vote expected in early spring 2026. Investors will closely monitor the impact of the substantial share issuance and the execution of integration plans.
At the time of this announcement, PSKY was trading at $13.60 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $9.95 to $20.86. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.