Paramount Global announced on Tuesday the completion of its $111 billion acquisition of Warner Bros. Discovery, a transaction that establishes a new media conglomerate operating under the name Skydance. This merger brings together a wide array of entertainment assets, including the film studios of Paramount and Warner Bros., news organizations CBS News and CNN, and cable networks such as HBO, Nickelodeon, and TBS. David Ellison, who spearheaded the merger as CEO of Paramount Skydance, will lead the new company alongside Ynon Kreiz, formerly the CEO of Mattel, who will serve as co-CEO.
The consolidation follows a protracted bidding process and several months of legal challenges. In July, a coalition of 12 state attorneys general, including California and New York, filed a lawsuit to block the merger, citing concerns that it would diminish competition. The Writers Guild of America also filed a separate lawsuit on antitrust grounds. Paramount settled with the states last month, agreeing to specific concessions. Under the settlement, Skydance is required to release a minimum of 30 films annually and produce over 180 television shows. The company also committed to maintaining independent editorial boards for CBS News and CNN, with a trustee appointed to monitor compliance. Paramount also pledged to spend at least $300 million more per year on United States-based production and is barred from selling or closing its Los Angeles studio lots for at least five years.
The new entity, Skydance, will integrate the streaming services Paramount+ and HBO Max into a single offering over time. While the exact timeline and branding for this combined service remain unclear, company officials have indicated plans to unify the platforms to compete more effectively with other major players in the streaming market. Casey Bloys, chairman of HBO and HBO Max content, is expected to oversee the merged streaming operation. The merger is projected to yield $6 billion in cost savings, a figure that has prompted concerns within the media industry regarding potential job reductions.
Skydance shares will commence trading on the New York Stock Exchange under the ticker symbol "SKYD," while Warner Bros. Discovery shares will cease trading. The deal, valued at approximately $81 billion in equity and nearly $111 billion including debt, represents one of the largest media mergers in history. David Ellison stated that the ambition behind the merger was to create a stronger competitor with the resources and reach to produce diverse stories across all platforms.