The deal brings an extensive portfolio of film, television and streaming properties together under the leadership of billionaire David Ellison and new co-CEO Ynon Kreiz. The transaction is valued at nearly $111 billion when debt is included.
The newly expanded Skydance now controls franchises ranging from “Harry Potter,” “The Lord of the Rings” and DC’s superhero properties to “Top Gun,” “Mission: Impossible,” “Star Trek” and “The Godfather.” Its television and streaming assets include HBO Max, Paramount+, CBS, CNN, Nickelodeon, Comedy Central, Food Network and discovery+.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said after the deal closed.
Ellison’s Skydance acquired Paramount for $8 billion last year before turning its attention to Warner Bros. Discovery. The resulting takeover became one of the biggest transactions in media and entertainment history and further concentrates Hollywood’s major film and television assets in the hands of a small number of companies.
A year-long battle for Warner Bros.
Warner Bros. Discovery’s sale turned into a bidding contest after the company indicated it was open to selling all or part of its business.
Netflix initially reached an agreement to acquire Warner’s studio and streaming assets in December. Paramount then launched a competing bid, eventually offering $31 per share for the entire company. Netflix withdrew from the contest, while Warner and Paramount reached a merger agreement in late February.
The transaction then faced legal and regulatory challenges. In July, attorneys general from 12 US states, led by California, sued to block the deal, arguing that the combined company would reduce competition and consumer choice. The Writers Guild of America also filed a lawsuit.
The companies reached settlements with the states in September, clearing the final major obstacle to the transaction. The agreement includes commitments to increase US film production, support workers displaced by the merger and establish a new editorial independence board overseeing CNN and CBS.
Paramount has also agreed to release at least 30 films a year during the first two years following the merger, with the target rising to 32 films annually thereafter. The agreement includes requirements for a share of production to take place in the United States.
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Streaming services to eventually be unified
The merger gives Skydance control of two major streaming platforms, HBO Max and Paramount+.
The services will remain separate for now, but the company has said they will eventually be unified into a single platform. The timing and structure of that transition have not yet been announced.
The combined company will compete with other major entertainment groups including Disney, Universal and Sony, while managing a portfolio that spans film studios, television networks, streaming platforms and extensive intellectual property.
CNN and CBS raise questions over editorial independence
The takeover also places two major US news organizations, CNN and CBS News, under the same corporate ownership.
CNN editor-in-chief Mark Thompson will remain in his position, while Bari Weiss continues to lead CBS News. Ellison has pledged to preserve editorial independence at CNN.
The issue has drawn particular attention because of the Ellison family’s relationship with US President Donald Trump, who has repeatedly criticized CNN’s coverage. Trump welcomed the completion of the deal Tuesday, calling Skydance “a great company.”
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As part of the settlement with US states, Skydance agreed to establish a “News Editorial Independence Board” for CNN and CBS. Critics, however, have questioned whether the new body will be sufficiently independent from the company.
Gulf backing adds another layer of scrutiny
The deal was also backed by major financial investments from Saudi Arabia, Qatar and the United Arab Emirates.
The US Federal Communications Commission approved Paramount’s request allowing the Gulf investors to hold significant indirect equity in Skydance without voting rights. The company had previously expected the investors to hold nearly 50% of equity interests, but sought authorization for potential ownership of up to 100% to accommodate future investments.
Critics, including the FCC’s sole Democratic commissioner Anna Gomez, have raised concerns that the scale of the foreign investment could create opportunities for behind-the-scenes influence.
The completion of the merger leaves Skydance with an estimated annual revenue of nearly $70 billion and around $80 billion in net debt, according to figures cited by AP. The company now faces the task of integrating two vast entertainment businesses while cutting costs and managing its expanded streaming, film and television operations.
