Paramount Skydance Finalizes $110B Warner Bros. Merger to Form Skydance Entertainment
Hollywood's new giant, Skydance, emerges after $110B merger of Paramount and Warner Bros. Explore the impact on streaming, jobs, and media landscape.
POLICY WIRE — New York, United States — The $110 billion acquisition of Warner Bros Discovery by Paramount Skydance has officially closed, creating a major player in the entertainment industry named Skydance, with CEO David Ellison at its helm.
The newly formed entity unites the studios behind iconic franchises such as “Mission: Impossible,” Harry Potter, and DC Studios, along with TV and streaming platforms like CBS, CNN, Paramount+, and HBO Max, forming a vast entertainment conglomerate spanning film, television, and news.
The company’s stock was listed on the New York Stock Exchange under the ticker “SKYD” following settlements with U.S. states and a Hollywood writers union that cleared key legal hurdles. The merger marks one of the largest in media history amid challenges like declining cable subscriptions, rising competition for streaming audiences, and ongoing labor concerns in Hollywood.
Ellison emphasized that the Skydance name was selected to preserve the distinct identities of Paramount and Warner Bros rather than creating a new brand. However, analysts argue the name underscores his growing influence over some of the industry’s most recognizable brands, giving him control over strategic direction and cultural vision.
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Founded in 2010 by David Ellison, son of Oracle co-founder Larry Ellison, Skydance has rapidly expanded from an independent studio to a central force in Hollywood’s most significant corporate move. It gained prominence through its role in producing the blockbuster “Top Gun: Maverick.” After merging with Paramount last year, it pursued Warner Bros in a fierce bidding war against Netflix and attracted interest from other potential buyers like Comcast.
To manage operations, Ellison appointed Ynon Kreiz, former CEO of Mattel, as co-CEO of Skydance. While Ellison focuses on creative strategy, Kreiz will oversee daily functions and integration efforts. The pair must combine two large companies while achieving $6 billion in cost savings, primarily through streamlining streaming technologies and cloud infrastructure, though job cuts are expected across the industry.
The merged company is also projected to carry around $80 billion in debt, increasing pressure on Ellison to boost streaming growth, maintain cash flow from cable networks, and enhance theatrical film performance. Key executives, including CNN chief Mark Thompson and CBS News Editor-in-Chief Bari Weiss, will continue in their roles within the new structure.
Reporting by Policy-Wire (PW)
