Paramount Skydance has officially taken over Warner Bros Discovery in a $110bn merger that will reshape Hollywood and the media landscape. The deal, which brings together studios such as HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network, will see the newly merged entity re‑branded as Skydance Corporation, the company founded by David Ellison.
Ellison, chairman and chief executive of Skydance, called the completion of the deal "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, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality," he said.
Last week, Ellison appointed former Mattel chief executive Ynon Kreiz as co‑chief executive. Kreiz will oversee day‑to‑day operations and integration, while Ellison will focus on strategy and technology. Mark Thompson will remain chairman and editor‑in‑chief of CNN Worldwide, and Bari Weiss will stay editor‑in‑chief of CBS News.
Casey Bloys, who led HBO and Max Content, will serve as co‑chair and chief content officer for direct‑to‑consumer content. Mike Proulx of Forrester Research warned that Bloys will face pressure to deliver cost efficiencies that could affect content quality.
The merger has faced legal challenges, with lawyers in about a dozen U.S. states filing lawsuits aimed at blocking the deal on competition grounds. A settlement with Paramount and Ellison last month cleared the way for the merger to proceed. As part of the agreement, Paramount must establish a "news editorial independence board" to safeguard objective reporting at CNN and CBS.
To address concerns over competition and content quality, the deal includes strict guardrails against AI‑generated films, a requirement to release at least 30 films a year, and a production quota that mandates 20% of all film production take place in the U.S. for the first two years, rising to more than 30% in the following three years. Failure to meet the annual production quota could force Paramount to sell its 49% stake in Miramax.
The merger will also bring iconic franchises such as Harry Potter, Game of Thrones, The Lord of the Rings and Mission: Impossible under the Skydance umbrella, potentially reshaping streaming and film production for millions of viewers worldwide.
