Skydance takes control of WBD under five-year commitments

Warner Bros. Discovery became a wholly owned Skydance subsidiary on Oct. 6, 2026, bringing its film studios, streaming services, television properties and news organizations, including CBS News and CNN, under common ownership. WBD common stock ceased trading on Nasdaq after the acquisition closed.

Eligible WBD shares were converted to a right to $31.01666668 in cash per share, subject to exceptions that include shares with properly exercised appraisal rights. The acquisition followed two separate settlements that set commitments for the combined company.

On Sept. 30, the U.S. District Court for the Northern District of California entered a consent decree resolving a lawsuit by 12 states under Section 7 of the Clayton Act. The states and companies had entered the decree on Sept. 21. It modified an order that had barred the deal from closing. A separate settlement resolved a lawsuit by the Writers Guild of America.

The state decree is not an admission that the combined entity violated the law; the WGA settlement is not an admission of liability or wrongdoing.

Film releases and production spending

The state decree sets a five-year schedule for U.S. theatrical releases: at least 30 films in each of the first two commitment years, rising to at least 32 in each of the next three. Separate minimums require 20 wide-release films in each of the first two years and 21 in each of the following three, as well as at least four independent films annually. At least half of the films counted toward each year’s overall minimum must be produced or jointly produced by the combined company.

Films counted toward those minimums must receive a theatrical window of at least 45 days. They cannot be made available on a subscription streaming service until at least 90 days after their initial U.S. theatrical exhibition.

The company must spend at least $300 million more each year on U.S. production than Paramount and WBD spent together in 2025, for at least $1.5 billion in additional spending over five years. During that period, the decree bars the company from selling or closing the Paramount or Warner Bros. studio lots.

The decree also directs $9.5 million annually for five years to specified workforce training and career-development programs, film programs and community arts organizations. It requires the company to honor existing collective bargaining agreements and bargain in good faith with applicable labor organizations over successor agreements. The program funding is not a job guarantee.

Separate commitments address CBS News staffing and editorial disputes

The WGA settlement sets a narrower staffing obligation. During the commitment period, the company must maintain at CBS News Broadcast an aggregate number of full-time WGA-represented staff at least equal to the number employed there on the acquisition closing date. If the number falls below that baseline, the agreement allows six months to cure the shortfall. The filing does not state the baseline headcount. The commitment does not cover all company employees or establish the acquisition’s overall employment effects.

The state decree requires a five-member News Editorial Independence Board, composed of established journalists, to be established within 180 days after closing. During the commitment period, the board is to establish guiding editorial principles and resolve specified disputes involving CBS News and CNN, including allegations of violations of those principles, reporting bias or unfairness.

The WGA said it believed the merger would harm writers and the industry. Separately, the Associated Press reported concerns among some observers about potential job losses and which projects might be approved. Those concerns are not established employment outcomes. The decree also includes monitoring and reporting requirements in addition to the commitments described above.