Paramount Skydance (PSKY) closes WBD deal on $51.9 billion financing

Posted by on Oct 6th, 2026

What happened

Paramount Skydance Corporation (PSKY) completed its Warner Bros. Discovery acquisition on October 6, 2026. Warner Bros. Discovery, Inc. became a wholly owned subsidiary of Paramount after Prince Sub Inc. merged with and into WBD.

For pro forma purposes, the filing estimates $78.0 billion of cash consideration for WBD common stockholders and about $1.1 billion of cash payments for vested WBD equity awards. Paramount says the deal was funded with $51.9 billion of New Permanent Financing and the $5.0 billion Term A loans under the Pro Rata Credit Agreement.

That package included $9.5 billion of seven-year Term B Loans, $30.0 billion of New First Lien Secured Notes and $12.4 billion of New Second Lien Secured Notes. At closing, Paramount issued about 3,918 million Class B shares to the Equity Syndication Parties and paid the $2.8 billion Netflix Termination Fee in connection with the merger agreement.

Key numbers

Metric Latest Change Source
Estimated cash consideration $78.0 billion SEC 8-K Exhibit 99.2
New Permanent Financing $51.9 billion SEC 8-K Exhibit 99.2
2025 revenues $66.13 billion SEC 8-K Exhibit 99.2
2025 net earnings attributable to Paramount -$6.08 billion SEC 8-K Exhibit 99.2
2025 total costs and expenses $68.72 billion SEC 8-K Exhibit 99.2
Pro forma long-term debt $80.32 billion SEC 8-K Exhibit 99.2

Read more: Paramount Skydance (PSKY) stock analysis and investment case

Why it matters

OptimistFi's case is that Paramount Skydance is a turnaround whose value depends on converting a large media revenue base into durable GAAP profits and cash flow before legacy television economics deteriorate further. The filing gives investors a new baseline, with 2025 revenues of $66.13 billion and long-term debt of $80.32 billion after the acquisition.

By OptimistFi's calculation, the $51.9 billion permanent financing is about 66.5% of the $78.0 billion estimated cash consideration. That shows how much leverage the transaction adds. The filing still reports a $6.08 billion net loss attributable to Paramount for 2025.

The filing also says the $2.8 billion Netflix Termination Fee was treated as purchase consideration, not operating income. It says the unaudited pro forma statements are illustrative only and do not include revenue synergies, operating efficiencies or cost savings.

Browse: stock research on every company OptimistFi covers

What's next

Paramount expects to distribute one 10-year warrant for each share of Paramount Class B Common Stock held as of the record date of October 5, 2026, on or about October 13, 2026. The warrants start at a $12.00 exercise price and can be called after the third anniversary if the stock closes at $30.00 for at least 20 trading days in any 30-day period.

The Exchange Offers and Tender Offers are expected to settle promptly following the closing, and final appraisal work is expected no later than one year from the closing date. Stable final valuations would support the preliminary purchase accounting. Material revisions would weaken the case.

More from OptimistFi

Sources

Read the full OptimistFi thesis on Paramount Skydance Corporation: https://optimistfi.com/stocks/PSKY

See what would break the Paramount Skydance Corporation thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Paramount Skydance Corporation investment case, its status and the next test to watch live on the Paramount Skydance Corporation thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.