Paramount Skydance has officially taken over Warner Bros Discovery in a $110bn merger that is set to reshape Hollywood and the media landscape.
The takeover – merging two of the biggest studios in Los Angeles – comes after months of legal disputes and widespread criticism over feared cuts and consolidation could harm competition and consumers.
It will alter streaming for millions, usher in a new chapter in the film and TV industry, and leave one of the biggest US news outlets, CNN, in uncertain territory.
The merger will also bring together a host of entities including HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network.
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Paramount will acquire ownership of iconic franchises that include Harry Potter, Game of Thrones, The Lord of the Rings to add to its existing catalogue of hit franchises which includes Indiana Jones, Mission: Impossible and Shrek.
The newly merged entertainment behemoth will be re-branded under the name Skydance Corporation, the company originally founded by David Ellison before he took over both Paramount and Warner Bros Discover.
Ellison, chairman and chief executive of Skydance, said the completion of the deal was “historic” for the film industry.
“From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, replatform, for audiences everywhere. Now that ambition is a reality,” he said
Asked about the merger after it had been finalised, US President Donald Trump described the deal as “great”.
“They’re terrific people and it’s going to be a great company,” he said.
Last week, Ellison named the outgoing chief executive of Mattel, Ynon Kreiz, as co-chief executive.
Kreiz will focus on the company’s day-to-day operations, including integrating the newly-combined businesses, while Ellison will focus on strategy and technology.
Mark Thompson – who once served as director general of the BBC – will continue in his role as chairman and editor-in-chief of CNN Worldwide, while Bari Weiss remains editor-in-chief of CBS News.
Casey Bloys, who has lead HBO and Max Content, will be the co-chair and chief content officer for direct-to-consumer content.
Mike Proulx, research director at Forrester Research, said that change “essentially means the HBO leadership team is now in charge of Skydance’s combined streaming operation”.
“While that bodes well for the HBO brand, make no mistake, Bloys will be pressured to find and deliver cost efficiencies that could affect content quality,” he warned.
Dan Coatsworth, head of markets at AJ Bell, said the company has high debts at a time when interest rates are high.
“The combined entity, now called Skydance, needs to cut costs and make bigger profits to be able to get the debt down to more manageable levels,” he said.
“The fact Tom Cruise movie Digger, Warner Bros’ last release before the merger, has been a major flop is a reminder of how the film industry is not a guaranteed ticket to riches.”
Rocky path to merger
While the company said it had received unanimous approval from competition authorities across the world, the long running takeover process has featured controversy since the beginning.
Netflix initially had a deal to buy part of Warner Bros Discovery, but Paramount Skydance launched a bidding war, leading to the streaming giant walking away.
Lawyers in about a dozen US states then filed lawsuits – led by California – aiming to block the deal, arguing it would stifle competition, raise consumer prices and cause “substantial” harm to movie theatres, cable distributors and “ultimately, audiences nationwide”.
US states announced a settlement with Paramount and Ellison last month which paved the way for the merger to go ahead.
As part of the deal, Paramount has agreed to establish a “news editorial independence board” to “ensure independent, objective, fact-based reporting” at CNN and CBS.
Politics and editorial independence has become an area of concern at CBS since the news broadcaster was taken over in 2025 as part of separate a merger between Skydance Media and Paramount.
Ellison, who hosted a dinner for President Donald Trump earlier this year, has sought to reassure people that editorial independence will be maintained.
Over its 103-year-old history, Warner Bros has won more than 100 Academy Awards – including dominating at last year’s show with a record-tying 11 Oscars for One Battle After Another, Sinners and Weapons.
Paramount traces its roots back 1912 and also boasts more than 100 Oscars for classics spanning from The Godfather to Titanic, though the studio has not mirrored the same recent spate of Hollywood honours.
The studio was not nominated for any projects last year by the Academy. Its last win came in 2022 with Top Gun: Maverick.
The deal with US states aims to ensure the merged studios will produce “real, robust movies” that will generate economic activity and put people back to work, said California Attorney General Rob Bonta, who led the lawsuit and settlement.
To prevent the studio from fulfilling its annual quota with low-budget or automated content, the deal includes strict guardrails against “AI-generated” films.
As part of the agreement, Paramount must release at least 30 films each year. If it fails to meet its annual production quota, it will be forced to sell its 49% stake in Miramax, the film company founded by disgraced Hollywood mogul Harvey Weinstein and his brother Bob.
Paramount also must ensure 20% of all film production takes place in the US for the first two years, rising to more than 30% through the following three years.
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