Paramount Skydance completes $110 billion Warner Bros. Discovery acquisition

Paramount Skydance Corp. has completed its $110 billion acquisition of Warner Bros. Discovery Inc., creating one of the largest media companies in the world after a bidding battle with Netflix and challenges from US antitrust lawsuits.

The new company, called Skydance, combines two major Hollywood studios and brings franchises including Harry Potter and Mission: Impossible under one roof. It will also own television networks including CBS and TNT, as well as the Paramount+ and HBO Max streaming services.

David Ellison, who completed the merger of his Skydance Media with Paramount in August 2025, will serve as co-chief executive with Ynon Kreiz, formerly CEO of Mattel. Kreiz will oversee day-to-day operations, while Ellison will focus on creative strategy and relationships with talent.

The merger follows a months-long bidding war with Netflix, which had previously agreed to acquire Warner Bros.’ studios and streaming business.

Paramount increased its offer and secured a funding guarantee from Ellison’s father, Larry Ellison. Paramount also paid Netflix a $2.8 billion breakup fee on behalf of Warner Bros.

The deal received antitrust approval from the US Department of Justice, the European Union, and other jurisdictions but faced lawsuits from 12 US states and the Writers Guild of America over concerns about higher consumer prices and job losses.

Skydance now faces the challenge of integrating the businesses while carrying nearly $80 billion in debt. Paramount has pledged to generate more than $6 billion in annual synergies within three years, raising concerns over potential job cuts.

As part of a settlement with the states, Skydance agreed to release at least 30 films annually in theatres, with a 45-day exclusive theatrical window. It also agreed to establish an editorial independence board for CBS and CNN.

Warner Bros. CEO David Zaslav will leave the company following the acquisition. Several senior executives, including CNN CEO Mark Thompson, CBS News editor-in-chief Bari Weiss, and DC Studios chiefs James Gunn and Peter Safran, will remain in their roles.