A new media conglomerate called Skydance has been formed after the completion of a landmark merger between Paramount and Warner Bros. Discovery, creating one of the largest entertainment companies in history.
The deal, valued at approximately $111 billion including Warner Bros. Discovery's assumed debt, was announced Tuesday. The base acquisition cost stood at around $81 billion, or roughly 72 billion euros.
David Ellison, a billionaire investor, serves as chairman and CEO of the new company. He first acquired Paramount and its subsidiaries before moving to absorb the larger Warner Bros. Discovery. Ellison's co-CEO is Ynon Kreiz, the former head of Mattel, who will oversee day-to-day operations.
"Today is a historic day, not just for Skydance but for our entire industry," Ellison said.
"From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality," he added in a separate statement.
Skydance shares began trading on the New York Stock Exchange on Tuesday under the ticker SKYD. Warner Bros. Discovery shareholders will receive approximately $31 per share.
The merger brings together two of Hollywood's oldest studios, both more than 100 years old: Paramount Pictures and Warner Bros. Pictures. The combined library includes around 15,000 films, spanning franchises such as Harry Potter, the DC Universe, Mission: Impossible, Top Gun, and The Godfather.
The deal also unites the CBS News and CNN television news networks, the HBO and CBS television brands, and cable channels including MTV, Comedy Central, and the Food Network. Ellison has said he plans to merge the Paramount+ and HBO Max streaming platforms.
Skydance is projected to generate total annual revenue of around $70 billion, based on the prior performance of its component parts. The company says it is targeting cost savings of approximately $6 billion within three years.
The transaction passed legal and regulatory challenges in both the United States and Europe. It closed less than a week after a federal judge in California approved a settlement with 12 US states that had sued to block the deal on antitrust grounds. The Writers Guild of America also attempted unsuccessfully to block the merger.
As part of the settlement, Ellison agreed that the combined studios will produce at least 30 films per year for the coming years.
The merger faced months of public opposition from workers in the entertainment and news industries, as well as from media advocacy groups. Critics have raised concerns about the concentration of media ownership and potential political influence, particularly regarding CNN, given that Ellison and his father, billionaire Larry Ellison, are known allies of President Donald Trump.
"We're concerned about the Ellisons corrupting CNN," said attorney Jessica Gonzalez, co-CEO of the nonprofit media advocacy organization Free Press, which helped organize the Block the Merger Coalition. "We're concerned about what the Ellisons have already done since taking over Paramount and CBS. They are willing to use their money and power to censor the news, to tear down stories that they or the president don't like. We deserve better than billionaire oligarchs controlling our media system."
To satisfy the federal court in the antitrust case, Ellison agreed to establish an independent oversight board to protect CNN from political interference. Skydance confirmed that CNN's current head, Mark Thompson, will remain in his role. Bari Weiss will continue to lead CBS News.
Ellison controls the new media empire with support from his father and investors from Saudi Arabia, Qatar, and other Middle Eastern countries.
The bid had faced competition from Netflix in a bidding war before ultimately prevailing. Critics and consumer advocates warn that viewers may face higher streaming prices and fewer choices as a result of the consolidation.
