Paramount has completed its approximately $111 billion acquisition of Warner Bros Discovery, forming one of the largest entertainment companies globally. The deal, finalized on October 6, brings together two of Hollywood’s major studios—Paramount Pictures and Warner Bros—along with a diverse portfolio including HBO, HBO Max, Paramount+, CBS, CNN, and Discovery networks. The new entity, operating under the name Skydance, will be publicly traded on the New York Stock Exchange under the ticker "SKYD."
David Ellison, founder of Skydance Media and son of Oracle co-founder Larry Ellison, will lead the combined company as co-chief executive alongside Ynon Kreiz, the former CEO of Mattel. While Ellison will oversee creative direction and overall strategy, Kreiz is tasked with managing day-to-day operations and the integration process. The leadership team also includes new board members such as former Activision Blizzard CEO Bobby Kotick and adviser Tony Blair, the former British prime minister.
The merger consolidates a vast array of content and franchises, including well-known properties like Harry Potter, DC superheroes, Mission: Impossible, and Top Gun, positioning Skydance to compete with established rivals such as Disney, Comcast’s Universal, Sony, Netflix, and emerging competition from technology giants like Apple, Meta, and Amazon. Analysts project revenues of around $67 billion by 2028, with profits expected to grow substantially by 2030.
The transaction follows a prolonged bidding contest and months of legal scrutiny, with challenges from multiple US states concerned about the potential impact on competition, workers, and consumers. To address these concerns, Skydance agreed to several concessions as part of a settlement approved by a federal judge at the end of September. These include a commitment to release a minimum of 30 theatrical films annually during the initial phase, invest an extra $1.5 billion in US production over five years, and maintain the historic studio lots of Paramount and Warner Bros.
The settlement also mandates the establishment of a five-member News Editorial Independence Board responsible for overseeing disputes related to CNN and CBS News, focusing on editorial fairness and bias. Despite these provisions, critics and lawmakers remain uneasy about Ellison’s control over two major US news organizations, questioning whether the board will effectively prevent undue corporate influence. CBS News editor-in-chief Bari Weiss and CNN chief Mark Thompson will retain their leadership roles and report separately to Ellison and Kreiz, a move intended to safeguard editorial autonomy.
Skydance faces significant operational challenges, including integrating the two companies and achieving $6 billion in planned cost savings, primarily from non-labor sources such as technology consolidation. The firm also plans to merge its streaming platforms, HBO Max and Paramount+, into a single service to compete more effectively in the evolving media landscape.
The deal marks a notable shift in Hollywood’s landscape, as Skydance evolves from an independent studio founded in 2010 to a dominant conglomerate with expansive influence across film, television, and news media. Meanwhile, President Donald Trump has publicly expressed support for the deal, calling it "a great merger," despite his history of criticism towards CNN and other news outlets. The acquisition arrives amid ongoing industry pressures including declining cable subscriptions, rising production costs, and increased scrutiny from creative unions.