MergerMay 4, 2026, 05:23 PM
Paramount Skydance to Acquire WBD for $80.9B; Q1 Revenue $7.35B, Net Earnings $168M
AI Summary
Paramount Skydance announced a definitive merger agreement to acquire Warner Bros. Discovery (WBD) for an equity value of $80.9 billion, with the deal expected to close by the end of Q3 2026. The acquisition involves significant equity investments totaling $46.95 billion and $54 billion in debt financing. For Q1 2026, the company reported a 2.15% increase in revenues to $7,347 million and a 10.5% rise in net earnings attributable to Parent to $168 million. However, basic net earnings per common share declined to $0.15, primarily due to a substantial increase in weighted average shares outstanding following prior transactions.
Key Highlights
- Paramount Skydance to acquire Warner Bros. Discovery (WBD) for an equity value of $80.9 billion.
- Equity investors committed up to $46.95 billion for Class B common stock to fund the WBD merger.
- Secured $54 billion in debt financing, including a $49 billion bridge loan, for the WBD acquisition.
- Q1 2026 revenues increased 2.15% to $7,347 million from $7,192 million in Q1 2025.
- Q1 2026 net earnings attributable to Parent rose 10.5% to $168 million from $152 million in Q1 2025.
- Basic net earnings per common share decreased to $0.15 in Q1 2026 from $0.23 in Q1 2025.
- Net cash flow provided by operating activities was $185 million in Q1 2026, up from $180 million.
- Long-term debt increased to $14,821 million as of March 31, 2026, from $13,225 million.