Paramount completes $110 billion takeover of Warner Bros Discovery, creating Skydance with $70 billion in annual revenue. The merger unites Paramount Pictures, Warner Bros, CBS News, CNN, HBO and CBS under David Ellison's control. Skydance shares trade on NYSE at $31 per share.
Ellison's family, RedBird Capital and sovereign wealth funds led $47 billion in equity for the deal. The combined company will merge Paramount+ and HBO Max, aiming for $6 billion in cost savings. CNN's editorial independence is protected by a new board. The merger follows a federal settlement with 12 US states.
The merger creates one of the largest media companies in history, with $80 billion in debt. Ellison faces pressure to grow streaming, preserve cash from cable networks and improve theatrical performance. Critics warn of job cuts and reduced film output, while Ellison emphasizes creative control and strategic integration.
Opponents in Hollywood warn of job losses and reduced film production, while Ellison emphasizes the merger's strategic and creative benefits. The deal includes safeguards to protect CNN's independence and address antitrust concerns, though some industry groups remain skeptical of the combined entity's impact on media diversity.