Paramount Skydance has completed its $110 billion acquisition of Warner Bros Discovery, creating a new entertainment giant with interests spanning cinema, television, streaming and news.
The combined business will be known as Skydance Corporation and will control a vast collection of brands, including HBO, CBS, CNN, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network.
The deal also puts major franchises such as Harry Potter, Game of Thrones and The Lord of the Rings alongside Paramount titles including Mission: Impossible, Indiana Jones and Shrek.
Its completion follows months of legal challenges and concerns that combining two of Hollywood's largest companies could reduce competition, push up prices and lead to significant cost-cutting.
A new Hollywood heavyweight
Skydance chairman and chief executive David Ellison hailed the completion of the transaction as a historic moment, saying the objective had been to combine the resources and creative talent of the two studios to build a stronger competitor across different entertainment platforms.
US President Donald Trump also welcomed the deal, describing the people behind the company positively and predicting the merged business would be successful.
The transaction is expected to have significant consequences for streaming audiences, while also placing fresh attention on the future of CNN and CBS News.
New leadership structure
Ellison will concentrate primarily on technology and the company's long-term strategy.
Former Mattel chief executive Ynon Kreiz has been appointed co-chief executive and will oversee day-to-day operations, including the integration of the Warner Bros and Paramount businesses.
At CNN, former BBC director-general Mark Thompson will remain chairman and editor-in-chief of CNN Worldwide.
Bari Weiss will continue as editor-in-chief of CBS News.
Meanwhile, HBO and Max executive Casey Bloys will take a leading role in the merged company's direct-to-consumer content operation.
Analysts have suggested that Bloys' appointment effectively places HBO's leadership at the centre of Skydance's combined streaming strategy. While that could benefit HBO creatively, observers have warned that pressure to reduce costs could affect future programming.
Debt puts pressure on merged company
The size of the new company also brings substantial financial pressure.
Analysts have warned that Skydance will need to increase profitability and find savings to deal with its debt burden, particularly while borrowing costs remain high.
The uncertain economics of filmmaking remain another challenge. Warner Bros' final release before completion of the merger, the Tom Cruise film Digger, performed poorly, illustrating the financial risks even major studios face when releasing expensive productions.
Merger faced legal opposition
The path to completing the deal was far from straightforward.
Netflix had initially struck an agreement to acquire part of Warner Bros Discovery, but Paramount Skydance entered the race with a rival bid. Netflix subsequently walked away.
The Paramount agreement then faced opposition from several US states.
A coalition led by California launched legal action seeking to prevent the merger, arguing that greater industry consolidation could reduce competition and ultimately hurt cinemas, television distributors and consumers.
A settlement reached last month cleared one of the final major barriers to completing the transaction.
Safeguards for CNN and CBS
News operations were an important part of the negotiations.
As part of the settlement, Paramount agreed to create an editorial independence board for CNN and CBS. Its stated purpose will be to safeguard independent, objective and fact-based journalism.
The issue has attracted particular attention because of concerns surrounding CBS since Skydance Media's earlier merger with Paramount in 2025.
Ellison's relationship with Trump has also drawn scrutiny, including after he hosted the president for dinner earlier this year. Ellison has insisted that the news organisations' editorial independence will be protected.
Two historic studios come together
The merger unites two companies with more than a century of Hollywood history.
Warner Bros is 103 years old and has accumulated more than 100 Academy Awards. Its productions enjoyed major success at last year's Oscars, taking a combined 11 awards across One Battle After Another, Sinners and Weapons.
Paramount's history stretches back to 1912. It has also collected more than 100 Oscars, with films ranging from The Godfather to Titanic among its most celebrated releases.
Its recent awards performance has been quieter, however. The studio received no Academy Award nominations last year, while its most recent Oscar win came with Top Gun: Maverick in 2022.
Skydance must make at least 30 films a year
The settlement with US states also places specific obligations on the merged company.
Paramount has committed to releasing at least 30 films every year, with the requirement designed to ensure that the consolidation of two studios does not result in a significant reduction in film production.
The agreement also includes restrictions intended to prevent the company from meeting its production target primarily through cheap or AI-generated films.
Failure to meet the annual 30-film requirement could force the company to sell its 49% stake in Miramax.
Skydance will additionally be required to keep a significant proportion of its filmmaking activity in the United States.
At least 20% of film production must take place in the US during the first two years following the merger. That proportion must rise above 30% during the subsequent three years.
California Attorney General Rob Bonta said the conditions were designed to ensure the merged studios continue making substantial films that generate jobs and wider economic activity.
Source: BBC
