Paramount Closes Warner Bros. Discovery Deal, Creating Media Giant Skydance
Hollywood has a new giant. Paramount officially completed its roughly $110 billion acquisition of Warner Bros. Discovery on Tuesday, October 6, combining two of the biggest names in entertainment into a single company called Skydance.
The deal puts CBS, CNN, HBO, Paramount+, HBO Max and two legendary movie studios under one roof, led by David Ellison.
What the New Company Owns
Skydance Corporation now controls the Paramount and Warner Bros. film studios, the CBS and HBO networks, a long list of cable channels, and two major news operations, CBS News and CNN. It also owns sports outlets CBS Sports and TNT Sports.
The company's library includes some of the most famous franchises in the world, from "Top Gun" and "Mission: Impossible" to "Harry Potter" and "SpongeBob SquarePants." Individual studios and brands are expected to keep their own identities.
Shares of the combined company began trading on the New York Stock Exchange under the ticker SKYD. Warner Bros. Discovery shareholders received about $31.02 per share in cash, according to the company's official announcement.
Who Is in Charge
Ellison, who founded Skydance Media in 2010 and acquired Paramount in 2025, is chairman and CEO. Ynon Kreiz, the former CEO of toymaker Mattel, joins as co-CEO and will oversee day-to-day operations and the integration of the two companies.
"Today is a historic day," Ellison said. "Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders."
Gerry Cardinale of RedBird Capital, a key investor and board member, called the deal "a defining moment for the industry." The Ellison family and RedBird control the company's voting shares.
What It Means for Streaming Subscribers
Skydance has more than 200 million streaming subscribers across Paramount+, HBO Max and the free service Pluto TV. The company says its streaming services will "unify into a single service over time," according to Cord Cutters News.
No details have been announced yet about pricing, bundles or when the combined service will launch.
The company is targeting nearly $70 billion in annual revenue and at least $6 billion in cost savings within three years. It is also carrying an estimated $80 billion in debt. The company has not announced specific layoffs.
How the Deal Got Done
Warner Bros. Discovery shareholders approved the Skydance Paramount merger in the spring, but the deal still faced a legal fight. In July, California and 11 other states sued to block it, arguing it would reduce competition in film and television.
U.S. District Judge Araceli Martínez-Olguín approved a settlement with the states that cleared the way for the deal to close, Law Commentary reported. Under the five-year agreement, the company must release at least 30 movies in theaters each year for two years and 32 a year after that. Films must stay in theaters for at least 45 days before heading to streaming. The company must also spend at least $300 million more on production than the two companies spent combined in 2025, and missing its movie targets could force it to sell off Miramax. Separately, Paramount agreed to contribute $17.5 million to a Writers Guild health fund to resolve the union's challenge.
The settlement also created an editorial independence board to oversee CBS News and CNN, a sign of concerns about newsroom independence under the new owner. CNN has frequently clashed with the White House, including President Trump's recent attacks on CNN's Kaitlan Collins, while Paramount has faced criticism over its own independence from stars like Stephen Colbert.
The deal closes a turbulent stretch for Warner Bros., whose DC film "Supergirl" underperformed this summer.
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