Paramount has finalized its acquisition of Warner Bros. Discovery, creating a new media conglomerate named Skydance that merges two of Hollywood’s leading studios and expands its reach across television, news, and cinema. The deal, completed on Tuesday, consolidates Paramount Pictures, Warner Bros. Pictures, CBS News, CNN, HBO, and CBS television brands under the leadership of David Ellison.
Following the completion of the transaction, Skydance’s shares began trading on the New York Stock Exchange under the ticker symbol "SKYD." Warner Bros. Discovery shareholders received a cash payout of approximately $31 per share as part of the agreement. The deal marks one of the largest media mergers to date and comes less than a week after a federal judge in California approved a settlement resolving antitrust lawsuits brought by 12 U.S. states that had sought to block the merger.
David Ellison, whose family has close financial ties to former U.S. President Donald Trump, will serve as chairman and CEO of the combined company. Ynon Kreiz, former chief executive of Mattel, will act as co-CEO, responsible for day-to-day operations and overseeing the integration of the two businesses. Ellison has indicated plans to eventually merge the Paramount+ and HBO Max streaming platforms.
The transaction, backed by $47 billion in new equity, includes major investments from the Ellison family, private equity firm RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. Larry Ellison, founder of Oracle and David Ellison’s father, provided significant financial support and guarantees for lenders involved in the deal. The Ellison family holds the largest equity stake in Skydance.
Skydance projects nearly $70 billion in annual revenue and aims to achieve more than $6 billion in cost savings within three years. However, the merger has raised concerns within the entertainment and news industries. Some industry observers fear job cuts in an already pressured Hollywood market and a reduction in the volume of film productions. Additionally, there are worries about the potential impact on CNN’s editorial independence. To address these issues, the merger agreement includes safeguards such as an independent board established to protect the journalistic autonomy of CNN.
The deal, initially challenged by antitrust authorities in several states, ultimately received federal approval during the Trump administration earlier this year, allowing the acquisition to proceed without requiring significant structural changes to the new company’s business operations.