Warner Bros. Discovery CFO Disposes Holdings in Skydance Merger

Executive Summary

On October 8, 2026, Gunnar Wiedenfels, Chief Financial Officer of Warner Bros. Discovery, Inc. ($WBD), reported the disposition and conversion of all his equity holdings in WBD effective October 6, 2026. The dispositions took place pursuant to the Agreement and Plan of Merger dated February 27, 2026, under which WBD merged with a subsidiary of Skydance Corporation (f/k/a Paramount Skydance Corporation), with WBD surviving as a wholly owned subsidiary of Skydance.

Transaction Breakdown

Non-Derivative Securities

1. Common Stock (Direct): Disposed of 41,784 shares of Series A Common Stock at $31.0167 per share (totaling ~$1.30M in cash consideration).
2. Common Stock (Indirect/Custodian): Disposed of 14,140 shares at $31.0167 per share.
3. Unvested RSUs: 421,941 unvested restricted stock units were cancelled and converted into contingent cash awards at $31.0167 per unit, maintaining existing vesting schedules.
4. Unvested PRSUs: 227,532 unvested performance RSUs (certified) were cancelled and converted into contingent cash awards at $31.0167 per unit.
5. Earned PRSUs: 2,982,465 PRSUs became earned upon merger consummation and were converted into contingent cash awards at $31.0167 per unit.

Derivative Securities (Options)

1. Underwater Options: 130,546 stock options with an exercise price of $58.18 were cancelled for no consideration because the strike price exceeded the merger consideration.
2. In-the-Money Options:
   • 135,102 options (strike $8.67) converted into cash awards equal to the spread ($31.0167 - $8.67 = $22.3467 per share).
   • 250,924 options (strike $11.02) converted into cash awards equal to the spread ($31.0167 - $11.02 = $19.9967 per share).

Trading Significance

The trading significance is assessed as Low. These transactions reflect the closing of a previously announced merger acquisition rather than open-market discretionary trading or an informative signal about future company fundamentals.