Archive · 7 Oct 2026
Paramount Completes Warner Takeover, Creating Hollywood Giant Skydance
Paramount has bought Warner Bros.
Discovery, bringing their movie studios, television networks and streaming services together in a company called Skydance.
The deal cost $81 billion, and its value including debt is nearly $111 billion.
David Ellison and Ynon Kreiz will lead the company.
Paramount won after Netflix left the bidding contest.
Skydance says it plans to bring its streaming products together over time, but it has not announced the new service’s name or price.
The company has agreed to release a set number of movies in theaters and spend more on film production in the United States.
Some people worry that the merger could mean fewer jobs, less competition and higher streaming costs.
Journalists and critics also have concerns about news independence, while the company says CNN’s editorial independence will be maintained and has agreed to create an independence board.
Paramount completed its $81 billion takeover of Warner Bros. Discovery on Tuesday, forming a combined company called Skydance; one article dates the closing October 6.
The acquisition is valued at nearly $111 billion including debt, and David Ellison and co-CEO Ynon Kreiz will lead the company.
Paramount won the bidding contest with a $31-per-share offer after Netflix withdrew; Warner and Paramount reached a merger agreement in late February.
Skydance plans to unify its streaming products over time, but has not announced the service’s name, price or how the change will affect consumer choices.
The merger drew concerns about competition, jobs, consumer costs and news independence, while the company agreed to film-release, U.S. production-spending and editorial-oversight commitments.
- Who
- Paramount and Warner Bros. Discovery; the combined company will be led by David Ellison and co-CEO Ynon Kreiz.
- What
- Paramount completed its takeover of Warner Bros. Discovery, forming the combined company Skydance.
- When
- Tuesday; one article gives the date as October 6.
- Where
- The United States; the deal combines American media and entertainment companies.
- Why
- Paramount sought to acquire Warner Bros. Discovery and prevailed in a bidding contest with a $31-per-share offer after Netflix withdrew.
Critics and opponents
Company and supporters
Competition, jobs and audience choice
Critics and opponents
Creatives and state attorneys general warned the merger could reduce competition, jobs and choices for audiences and consumers. A report cited in one article estimated the merger could eliminate around 4,500 direct film and television jobs and $1.26 billion in wages over three years.
Company and supporters
The company agreed to theatrical-release and U.S. production-spending commitments and a fund to support workers displaced by the merger. Some filmmakers and performers publicly supported Paramount and Ellison.
Streaming prices and consumer choice
Critics and opponents
Critics warned that subscription prices could rise as the combined company pays debt taken on to finance the deal, and questioned how consumers would benefit from combining services.
Company and supporters
Ellison said bringing platforms together could give content a broader audience and suggested HBO could retain some independence. The company has not announced a unified service’s name or pricing.
News independence and foreign investment
Critics and opponents
Critics questioned whether the CNN independence board would be effective, pointing to Ellison’s oversight of appointments and changes at CBS. Critics also warned that Gulf investment could enable behind-the-scenes influence.
Company and supporters
Ellison has said CNN’s editorial independence will be maintained; the company will retain Mark Thompson as CNN editor-in-chief and establish an independence board. The FCC approved indirect sovereign-fund ownership without voting rights, citing access to capital and the public interest.
- Takeover price
- $81 billion
- Value including debt
- Nearly $111 billion
- Combined company
- Skydance
- Leadership
- David Ellison and co-CEO Ynon Kreiz
- Winning offer
- $31 per share; Netflix withdrew from the bidding contest.
- Theatrical releases
- 30 films annually for two years, then 32 annually for three years; at least half must be produced or jointly produced by the company.
- U.S. film production
- The company agreed to increase U.S. film-production spending by at least $1.5 billion over five years.
- Streaming and news
- The company plans to unify streaming products over time. It will retain Mark Thompson as CNN editor-in-chief and establish a News Editorial Independence Board.
Sources
Paramount and Warner Bros are now one Hollywood giant: Skydance
What Paramount’s Warner Bros. takeover means for streaming, movies and news
Skydance: How Paramount-Warner Bros merger will change the way we watch movies and the news
Paramount Closes $81 Billion Warner Bros Discovery Takeover To Form New Hollywood Giant
