Paramount-Warner Bros merger: David Ellison names combined company Skydance
Paramount Skydance CEO David Ellison has confirmed that the combined company created by the merger with Warner Bros Discovery will be called Skydance, with the new corporate identity set to take effect as the $110 billion deal moves towards completion.
The decision is intended to give the merged entity its own corporate identity while keeping Paramount and Warner Bros as distinct entertainment brands, Ellison said.
The combination will create a major entertainment business spanning film, television, news and streaming, bringing together studios behind franchises such as Mission: Impossible and Harry Potter, along with networks and platforms including CBS, CNN, Paramount and HBO Max, Reuters reported.
Why David Ellison chose the Skydance name
Ellison said the name was chosen to ensure that the corporate identity of the combined business does not overshadow the established brands being brought together.
“We never wanted a new corporate identity to diminish, alter or overshadow either one,” Ellison wrote in a social media post. “Instead, we wanted a name that would give the combined company an identity of its own while allowing Paramount and Warner Bros — and all our extraordinary brands — to remain in the spotlight.”
The name comes from Skydance Media, the film production company founded by Ellison.
However, the decision has also drawn criticism. Ross Benes, senior analyst at eMarketer, described the choice as an attempt to reinforce Ellison's position within the newly combined business.
“The name is ego-driven. It reminds everyone that the most iconic Hollywood brands answer to Ellison and it is his company who won out,” Benes said.
Skydance Corporation to debut on NYSE
The company's legal name is scheduled to change to Skydance Corporation on October 6, according to a regulatory filing.
On the same day, its Class B shares are expected to move from Nasdaq to the New York Stock Exchange. The stock will trade under the ticker “SKYD”, replacing “PSKY.”
The change comes as the companies prepare to complete the merger after a US judge cleared the way for the transaction.
$110 billion deal clears legal hurdle
A US judge on Wednesday entered an order allowing Paramount Skydance to close its $110 billion acquisition of Warner Bros Discovery. The order approved a September 21 settlement with a California-led group of 12 states that had sued to block the transaction, arguing that the merger would create a media giant capable of driving up film and television prices.
With the legal hurdle cleared, the companies are moving towards closing the transaction, Reuters reported.
$6 billion savings target, $80 billion debt
The combined company will be led by David Ellison as CEO, with Ynon Kreiz, the Mattel CEO, serving as co-CEO. Ellison named Kreiz earlier this week, tasking him with running day-to-day operations and leading the integration of the two businesses.
The leadership team will also face significant financial targets. The merged company is aiming to achieve $6 billion in cost savings while managing approximately $80 billion in combined debt.
The merger will therefore bring together a vast portfolio of Hollywood franchises, television networks and streaming businesses, while placing the new Skydance entity under pressure to integrate the operations and deliver the financial efficiencies outlined by its leadership.