Key Highlights

  • The Merger of Paramount Skydance (NASDAQ:PSKY) and Warner Bros. Discovery (NASDAQ:WBD), agreed on February 27, 2026 at about USD 110 billion, is expected to close on October 6, 2026.
  • A federal judge approved a settlement of a state antitrust suit on September 30, and California reached a deal on September 21 with a five-year consent decree.
  • Ynon Kreiz, a longtime toy-industry chief executive, will be co-CEO alongside David Ellison, and Paramount Skydance (NASDAQ:PSKY) will move its primary listing to the New York Stock Exchange.
  • Warner Bros. Discovery (NASDAQ:WBD) leaves the S&P 500 on October 6 and the Nasdaq-100 on October 9, with replacements already named.

The Deal and the Timeline

Warner Bros. Discovery agreed to be acquired by Paramount Skydance on February 27, 2026 after a revised offer, in a deal valued at about USD 110 billion. The Department of Justice cleared it in June, but a California-led antitrust lawsuit held it up. California settled on September 21 under a five-year consent decree imposing conditions on the combined company's film studios and cable television businesses, and a federal judge approved the settlement on September 30. Paramount said the merger is expected to close on October 6.

Why the Timing Mattered

The court approval came on the last day before October 1, when a ticking fee began to take effect, increasing the cost of Warner Bros. Discovery for Paramount. A ticking fee compensates sellers when a deal drags on, so delay raises the price for the buyer. Minutes after the order, Paramount chief executive David Ellison announced he was hiring Ynon Kreiz, who led a major toy maker for eight years, as co-CEO. The combined company will unite the Warner Bros. and Paramount studios, HBO Max with Paramount+, and CBS News with CNN.

Index Changes, Risks and What to Watch

Because Warner Bros. Discovery will cease to exist as a separate listing, index providers are replacing it. Twilio (NYSE:TWLO) will join the S&P 500 before trading on October 6. Moderna (NASDAQ:MRNA) will join the Nasdaq-100 before the open on October 9. After the merger, Paramount Skydance (NASDAQ:PSKY) will transfer its primary listing to the New York Stock Exchange. Index Funds must adjust, which can create mechanical trading around these dates. Integration of two large studios, cable networks and news operations is complex, and the consent decree places conditions on operations for five years. Only Ellison and Kreiz are confirmed as board members so far, according to a report. Debt levels, cost cuts and editorial independence at CBS News and CNN will draw scrutiny. Investors in Warner Bros. Discovery (NASDAQ:WBD) should watch the closing confirmation on October 6 and treatment of their shares.

Where Things Stand

The deal is expected to close on October 6, following court approval and a state settlement, and index providers are already replacing Warner Bros. Discovery. Paramount Skydance (NASDAQ:PSKY) will lead the combined company with a new co-CEO and an NYSE listing. The risk is integration under a five-year consent decree. Closing is expected but conditional on final conditions.