Paramount has completed its $110 billion acquisition of Warner Bros. Discovery, bringing some of the world’s largest film studios, television networks and streaming platforms under a single media company.
The combined company will operate under the Skydance name, putting Paramount and Warner Bros.’ film studios alongside major entertainment and news brands including HBO, CBS News and CNN.
The completion brings to an end a lengthy acquisition process that saw Paramount compete with Netflix for control of Warner Bros. Discovery before securing an agreement in February.
The deal subsequently faced opposition from lawmakers, Hollywood talent and regulators concerned about the impact that further consolidation could have on competition across the film, television and streaming industries.
Paramount cleared one of the final regulatory obstacles in September after reaching a settlement with 12 US states that had sued to block the acquisition on antitrust grounds.
As part of that settlement, Skydance has agreed to maintain a minimum level of theatrical film production over the next five years.
The company must release at least 30 theatrical films during each of the first two years following the merger. It has also committed to spending at least $300 million more on US production compared with the combined amount Paramount and Warner Bros. Discovery spent last year.
David Ellison will lead the newly combined Skydance alongside Ynon Kreiz, the former chairman and CEO of Mattel.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in announcing the completion of the deal.
He said the company’s ambition was to bring the two studios together to create a stronger competitor with the talent, resources and reach to produce content across different genres and platforms.
The acquisition significantly expands Skydance’s position in the global entertainment business. Beyond the Paramount and Warner Bros. studios, the combined company now controls a wide portfolio spanning cinema, television, news and streaming.
The scale of the merged company could also reshape competition in streaming, where traditional Hollywood studios are competing against technology and entertainment companies including Netflix, Amazon and Apple.
At the same time, the regulatory conditions attached to the acquisition highlight continuing concerns about consolidation in the media industry and its potential impact on competition, employment and theatrical film production.
With the transaction now completed, attention will turn to how Skydance integrates the two companies and manages their overlapping film, television, news and streaming businesses.
