Paramount Completes $110 Billion Warner Bros Discovery Takeover, Creating Skydance

LOS ANGELES/NEW YORK — Paramount Skydance has completed its $110 billion acquisition of Warner Bros Discovery (WBD), creating a new global entertainment company operating under the name Skydance.

The transaction, completed on Tuesday, October 6, brings two major Hollywood studios together with a vast collection of film and television assets, streaming platforms, sports properties and news organisations. Warner Bros Discovery has become a wholly owned subsidiary of Skydance following the completion of the merger.

The $110 billion figure represents the transaction's enterprise value, while the equity value of the Warner Bros Discovery deal was approximately $81 billion.

A New Hollywood Powerhouse

The combination brings together major brands including Warner Bros, HBO, CNN, CBS, Paramount Pictures, Paramount+, HBO Max, Nickelodeon, Comedy Central and CBS News, among others.

The merged company also controls an extensive catalogue of globally recognised franchises, including Harry Potter, Game of Thrones, the DC Universe and Mission: Impossible, alongside other major film and television properties.

Skydance said the combined company will operate two major film studios, two global streaming services and a broad television portfolio, while also controlling major sports and news assets.

The company has also committed to producing at least 30 theatrical films annually, alongside more than 180 television shows and series across its operations.

David Ellison Takes Charge

David Ellison, who led Skydance through its earlier merger with Paramount, becomes the chief executive of the newly combined company.

Former Mattel chief executive Ynon Kreiz has joined him as co-CEO and will focus on day-to-day operations and integration of the businesses.

Ellison is expected to concentrate more heavily on strategy, technology and the company's creative direction.

The new leadership structure comes as Skydance seeks to integrate two large media organisations while pursuing at least $6 billion in annualised cost savings within three years.

Streaming at the Centre of the Strategy

One of the biggest consequences of the merger will be the combination of the companies' streaming operations.

Paramount+ and HBO Max will now operate within the same corporate structure, giving Skydance a significantly larger library of film and television content and a broader global streaming footprint.

HBO's Casey Bloys has been appointed chief content officer for the combined company's direct-to-consumer operations.

Industry analysts have nevertheless warned that integrating the platforms could lead to cost reductions and changes in content strategies as the company attempts to make streaming more profitable.

The merger comes as traditional television audiences continue to decline and entertainment companies face increasing competition from streaming platforms and major technology companies.

CNN and CBS News Under One Owner

The transaction also places CNN and CBS News under the same corporate ownership, creating one of the industry's largest combined news operations.

CNN Chairman and Editor-in-Chief Mark Thompson will remain in his position, while Bari Weiss continues as editor-in-chief of CBS News. Both will report within the new Skydance leadership structure.

Editorial independence has been a major issue surrounding the transaction.

As part of a settlement reached with US states challenging the merger, Skydance agreed to establish a News Editorial Independence Board intended to safeguard independent and fact-based reporting at CNN and CBS News.

The arrangement follows concerns raised during the lengthy regulatory and legal process about the potential impact of greater consolidation in the US media industry.

Merger Faced Legal and Competition Challenges

The takeover faced significant scrutiny before receiving final approval.

A group of US states, led by California, challenged the transaction on competition grounds, arguing that the merger could reduce competition and potentially affect consumers, movie theatres and other parts of the entertainment industry.

The legal challenge was ultimately resolved through a settlement that allowed the acquisition to proceed while imposing conditions on the combined company. A federal judge subsequently cleared the way for the transaction to close.

Paramount has said competition authorities in nearly 70 jurisdictions reviewed the transaction and cleared it.

Film Production Commitments

The settlement includes requirements intended to preserve theatrical film production in the United States.

Skydance has committed to releasing at least 30 theatrical films annually for five years and to additional investment in domestic film production.

The agreement also contains provisions concerning the use of AI-generated content and production levels, reflecting concerns that cost-cutting and automation could reduce traditional filmmaking employment and output.

The company is also carrying substantial debt following the transaction, increasing pressure on management to achieve the targeted savings and improve the financial performance of its combined streaming and entertainment businesses. Reuters reported that the combined company carries roughly $80 billion in debt.

What the Deal Means for Hollywood

The completion of the merger marks one of the most significant consolidations in the modern entertainment industry.

Skydance now controls a much larger collection of intellectual property, production capabilities, television networks, streaming services and news operations.

For audiences, the immediate impact is likely to be felt most strongly through changes to streaming services, content availability and the way Paramount and Warner Bros Discovery organise their film and television libraries.

For Hollywood, the larger question is whether the new company can successfully combine its extensive assets while controlling costs, maintaining theatrical production and competing with other global entertainment and technology companies.

The merger therefore begins a new chapter for two of Hollywood's most recognisable studios with the success of Skydance now depending on how effectively it can integrate their operations and turn their vast content libraries into a sustainable global entertainment business.