Los Angeles: Paramount Skydance has completed its $110 billion acquisition of Warner Bros Discovery, creating a new Hollywood entertainment giant called Skydance and bringing major film studios, television networks and streaming businesses under one corporate roof. The transaction closed on Tuesday, October 6, after months of regulatory scrutiny, legal challenges and a bidding battle involving Netflix.
The merger combines Paramount’s film and television assets with Warner Bros Discovery’s Warner Bros studio, DC Studios, HBO and CNN businesses. The enlarged company will also control Paramount+ and HBO Max, giving it a substantially larger presence in the global streaming market.
The deal represents one of the biggest media mergers in Hollywood history and marks another major step in David Ellison’s rapid expansion in the entertainment industry.
Skydance becomes a Hollywood powerhouse
The combined company brings together some of the industry’s best-known franchises and brands, including Mission: Impossible, Top Gun, Harry Potter, DC’s Batman and Superman properties, and HBO’s television portfolio.
Paramount’s CBS television network will also sit alongside Warner Bros Discovery’s CNN and other television and cable businesses.
The merger is designed to give the new Skydance greater scale as traditional television faces declining viewership and streaming companies compete aggressively for subscribers and premium content.
Reuters reported that the company intends to maintain the individual identities of Paramount and Warner Bros while using the combined scale to compete with companies including Netflix, Walt Disney, Amazon and Apple.
The company is expected to pursue more than $6 billion in annual cost savings within three years, making the integration of the two businesses one of the biggest immediate challenges for its leadership.
David Ellison takes charge
David Ellison, who founded Skydance Media, becomes one of Hollywood’s most powerful executives following the completion of the transaction.
Ellison had already completed his merger with Paramount in August 2025, putting him at the centre of the company before it pursued Warner Bros Discovery.
He will remain chairman and chief executive of the combined company, with responsibility for long-term strategy, creative direction, technology, talent relationships and capital allocation.
Ellison said the completion of the merger represented a historic moment for Skydance and the wider entertainment industry.
However, the scale of the new company also creates substantial operational challenges. Skydance must combine overlapping businesses, find efficiencies and manage a large debt burden while continuing to invest in films, television and streaming.
Ynon Kreiz joins as co-CEO
One of the most significant leadership decisions surrounding the merger was the appointment of Ynon Kreiz as co-CEO.
Kreiz, who was chairman and CEO of Mattel, joined Paramount ahead of the merger and will oversee day-to-day operations and integration of the combined businesses.
Ellison will focus more heavily on strategy and creative matters, while Kreiz will bring operational experience to the process of integrating Paramount and Warner Bros Discovery.
Kreiz has more than three decades of experience in media and entertainment. At Mattel, he helped develop a strategy focused on turning well-known consumer brands into entertainment franchises.
That approach was highlighted by the success of Barbie, which demonstrated how a traditional consumer brand could be expanded into film and wider entertainment.
The division of responsibilities between Ellison and Kreiz is intended to combine Ellison’s creative and industry relationships with Kreiz’s experience running a large international company.
Merger followed Netflix bidding battle
The road to the merger was not straightforward.
Paramount agreed to acquire Warner Bros Discovery in February 2026 after a months-long bidding contest involving Netflix. Netflix had previously agreed to buy Warner Bros’ studios and streaming operations, but its proposal did not include the company’s cable networks.
Paramount ultimately improved its offer and secured the transaction.
The financing was also substantial. Paramount raised tens of billions of dollars in loans and bonds to support the acquisition, adding to the financial pressure facing the combined company.
The merger agreement valued the transaction at roughly $110 billion, while the resulting company will carry a debt burden of around $80 billion. Reuters reported that the new company is targeting substantial cost savings as it seeks to make the enlarged business financially sustainable.
Legal challenges delayed the deal
Although regulators in numerous jurisdictions approved the transaction, the merger faced significant opposition in the United States.
A coalition of 12 states and the Writers Guild of America challenged the deal, arguing that consolidation could lead to higher prices for consumers and fewer jobs in Hollywood.
A US federal judge ultimately approved a settlement that allowed the merger to proceed. The settlement included conditions relating to theatrical releases and editorial independence at the company’s news organisations.
Paramount had already secured regulatory clearances in nearly 70 jurisdictions before the final US legal hurdles were resolved.
The legal process reflected wider concerns about the growing concentration of ownership in the entertainment industry, particularly as traditional studios attempt to compete with technology companies that have entered the streaming market.
New company faces huge debt and cost pressures
The merger gives Skydance enormous scale, but it also leaves the company with significant financial obligations.
The combined business will have to service roughly $80 billion in debt while spending heavily on film and television production.
At the same time, the entertainment industry is dealing with declining traditional cable television usage, intense streaming competition and changing audience habits.
The company therefore needs to demonstrate that its larger size can translate into stronger revenue and lower costs.
The planned savings of more than $6 billion a year are central to that strategy. However, cutting costs across two major Hollywood organisations could also involve job reductions and restructuring at a time when the industry is already facing employment pressures.
Theatrical releases come with conditions
As part of the settlement allowing the merger to proceed, Skydance agreed to maintain a significant theatrical release programme.
The company is required to release at least 30 films a year in US cinemas and keep them exclusively in theatres for 45 days before making them available for home viewing. The settlement also includes additional production commitments.
The requirement could influence how Skydance balances theatrical releases against its streaming ambitions.
The company now has two major subscription platforms, Paramount+ and HBO Max, creating the possibility of a much larger streaming operation while retaining established theatrical franchises.
CBS and CNN remain under separate leadership
The merger also raised concerns about the future of CBS News and CNN under the same corporate ownership.
As part of the legal settlement, Skydance agreed to establish an editorial independence board for the two news organisations.
The company has said CNN CEO Mark Thompson will remain in his position, while Bari Weiss will continue as editor-in-chief of CBS News. Both organisations will remain under separate leadership.
The arrangement is intended to address concerns about editorial independence and potential political influence following the merger.
Thompson has told CNN employees that he remains confident the new leadership will support the network’s editorial independence.
New leadership across film, streaming and television
Skydance has also put in place a broad leadership structure covering its major entertainment divisions.
Dana Goldberg, a longtime Skydance executive involved in films including Top Gun: Maverick and Mission: Impossible, and Josh Greenstein, a former Sony Pictures executive, will jointly oversee the motion picture group.
James Gunn and Peter Safran will continue to lead DC Studios, retaining responsibility for major comic-book franchises including Batman, Superman and Wonder Woman.
Casey Bloys, who has overseen HBO programming during a period that included shows such as House of the Dragon and The White Lotus, will lead the streaming division covering HBO Max and Paramount+.
George Cheeks will oversee the newly formed television division, while JB Perrette will continue working on the streaming and television businesses.
A new era for Hollywood
The completion of the Paramount-Warner Bros Discovery merger marks a major change in the structure of Hollywood.
Skydance now controls an unusually broad collection of film franchises, television networks, studios and streaming platforms. The scale could provide greater negotiating power and allow the company to spread the cost of producing premium content across a much larger business.
But the merger also comes with significant risks. Skydance must integrate two huge organisations, manage around $80 billion in debt, achieve billions of dollars in planned savings and maintain investment in the content that keeps audiences engaged.
The success of the deal will ultimately depend on whether the enlarged company can turn its collection of globally recognised brands into sustainable growth while navigating Hollywood’s rapidly changing business model.