Paramount Skydance has completed its $110 billion acquisition of Warner Bros. Discovery, creating one of the largest media companies in the world.
The deal brings together major entertainment brands, film studios, television networks, news organizations and streaming platforms under a new company called Skydance.
The combined company now includes Paramount’s film and television businesses alongside Warner Bros. Discovery assets such as Warner Bros., HBO, CNN and a large portfolio of cable networks.
The company will be led by David Ellison, CEO of Paramount Skydance, and Ynon Kreiz, the former CEO of Mattel, who will serve as co-CEO.
“This is a historic day,” Ellison said, describing the merger as an opportunity to build a stronger competitor in the global media industry.
What Skydance Now Owns
The merger brings together a wide range of well-known entertainment brands and services.
Skydance now controls Paramount+ and HBO Max, as well as Pluto TV and Discovery+. Its television and news assets include CBS, CNN, HBO, Nickelodeon, MTV, Comedy Central, TNT, TBS, Discovery, HGTV, Food Network and several other networks.
The combined company also controls major entertainment franchises including Harry Potter, Game of Thrones, Looney Tunes, The Lord of the Rings, Mission: Impossible, SpongeBob SquarePants, Star Trek and Transformers.
Its film assets include Warner Bros., New Line Cinema, DC Studios and other production businesses.
$6 Billion Cost Savings Target
One of the biggest challenges for the new company will be integrating the two businesses.
Skydance has said it is targeting about $6 billion in cost savings. The plan has raised concerns about possible job cuts as the company works to reduce costs and manage its large debt load.
Ellison and Kreiz acknowledged that the integration will involve changes and difficult decisions for employees.
Legal Challenges
The merger faced months of legal opposition from state attorneys general and the Writers Guild of America, which argued that the deal could reduce competition in the media industry.
Paramount eventually reached settlements that allowed the transaction to move forward.
As part of the agreement, Paramount committed to producing at least 30 films in each of the first two years following the merger. The company also agreed not to sell or close the Paramount or Warner Bros. studio lots in Los Angeles for at least five years.
The company will also establish an independent editorial board intended to help maintain editorial independence at CBS News and CNN.
What Happens Next?
Skydance shares will trade under the ticker “SKYD,” while Warner Bros. shares will stop trading.
The two streaming services, Paramount+ and HBO Max, are not expected to immediately become one platform. CBS News and CNN will also continue operating as separate news organizations.
The new company faces the challenge of combining two major media businesses while dealing with significant debt and pressure to reduce costs.
For now, the merger gives Skydance control of a huge collection of movies, television networks, streaming platforms and entertainment franchises, making it a major new player in the global media industry.
