- Paramount and Warner Bros. Discovery will operate under the Skydance name after their planned $110 billion merger closes next week.
The combined company created by Paramount Skydance Corp. (NASDAQ: PSKY) and Warner Bros. Discovery Inc. (NASDAQ: WBD) will be called Skydance, Paramount Skydance CEO David Ellison announced Friday. The planned transaction is expected to close on Oct. 6.
Ellison said the name is intended to give the combined company its own corporate identity while keeping Paramount and Warner Bros. as distinct brands.
The announcement comes days after a federal judge approved a settlement involving Paramount and 12 states that had challenged the transaction, clearing the remaining major legal obstacle to the merger. The deal would bring together major entertainment assets including Paramount Pictures, CBS, Paramount+, Warner Bros., HBO Max and CNN.
Paramount and Warner Bros. Brands Will Remain
The new corporate name does not mean the Paramount or Warner Bros. studio brands are being eliminated. Paramount and Warner Bros. are expected to continue operating under their existing names within the larger Skydance organization. Ellison said the corporate rebrand was designed to give the combined company a separate identity without overshadowing the two studios' established brands.
The merger would create a much larger entertainment company spanning film, television, streaming and news operations. The transaction has been valued at roughly $110 billion, including debt.
Paramount Skydance has also appointed Ynon Kreiz, the former Mattel Inc. (NASDAQ: MAT) chairman and CEO, as co-CEO of the combined company. Ellison will remain chairman and CEO, while Kreiz is expected to oversee day-to-day operations and integration.
Skydance Name Comes Before October 6 Closing
Paramount plans to change its legal name to Skydance Corporation when the merger closes, according to regulatory filings. Its Class B shares are also expected to move from Nasdaq to the New York Stock Exchange on Oct. 6, where they will trade under the SKYD ticker instead of PSKY
The company has been preparing for the transaction on several fronts, including financing, debt exchanges and management changes. Its Warner Bros. merger financing has been coordinated around the expected closing date.
The merger also includes commitments covering theatrical releases and domestic film production following the settlement with the states. Paramount will be required to release at least 30 theatrical films annually during the first two years after the merger, according to The Verge.
For investors, the next major event is the planned Oct. 6 closing, which would formally create Skydance and complete the combination of Paramount and Warner Bros. Discovery.