It’s official: Skydance-owned Paramount has completed its $81 billion takeover of Warner Bros. Discovery, the companies announced Tuesday. The merger, which includes billions in assumed debt, is valued at nearly $111 billion and creates one of the largest media conglomerates in history, now operating under the shortened name “Skydance.”
The combined entity brings together two of America’s oldest film studios, placing HBO Max, CNN, and franchises from “Harry Potter” to “Sinners” alongside Paramount+, CBS, and titles like “Top Gun” and “The Godfather.” All will fall under the leadership of billionaire David Ellison, who serves as CEO, and his new co-CEO Ynon Kreiz.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “We couldn’t be more excited to get to work.”
The deal further consolidates an entertainment landscape already dominated by a handful of major players. Skydance’s purchase of Paramount for $8 billion last year set the stage for an even more ambitious pursuit of Warner Bros. Discovery, culminating in a roughly year-long fight over the studio’s fate.
A Hostile Bid and a Bitter Battle
The road to Tuesday’s closing was anything but smooth. Months after Warner signaled it was open to selling parts or all of its business, the company initially struck a studio and streaming deal with Netflix in December. But Paramount, claiming Warner management “never engaged meaningfully” with its previous proposals, launched a hostile counterbid aimed at acquiring the entire company, including CNN and Discovery networks.
What followed was a heated back-and-forth in early 2026, with Warner’s leadership repeatedly backing Netflix as its preferred suitor. Paramount eventually raised its offer to $31 per share for all of Warner, prompting Netflix to bow out. By late February, Warner and Paramount had signed a mutual merger agreement.
Hollywood Pushes Back
The merger drew fierce opposition from many in the creative community. In April, thousands of movie stars, writers, directors, and other professionals signed an open letter expressing “unequivocal opposition” to the deal. Signatories included Jane Fonda, Mark Ruffalo, Denis Villeneuve, and J.J. Abrams, who warned of fewer jobs and “less choice for audiences in the United States and around the world.”
But others in Hollywood backed Paramount. At CinemaCon this spring, the company debuted a glossy mini-movie about the studio directed by Jon M. Chu and narrated by Tom Cruise, which ended with Cruise atop the Paramount water tower and the words “the future is paramount and the future looks pretty great from here.” Director James Cameron also voiced support for Ellison.
The shadow of the merger loomed over awards season. At last month’s Emmys, actor Sally Field, who had signed the opposition letter, stressed in her acceptance speech that “unique storytelling matters” and “we can’t let those voices be silenced, or compromised or merged.”
Political Pressure and CNN’s Future
The deal also became entangled in politics. President Trump has repeatedly attacked CNN’s coverage, calling the network’s output “poison and lies” in December and saying “it’s imperative that CNN be sold.” In March, Defense Secretary Pete Hegseth told reporters that “the sooner David Ellison takes over that network, the better.”
Ellison has pledged to maintain editorial independence at CNN. As part of a settlement with states, the company agreed to form a “News Editorial Independence Board.” However, critics remain skeptical, pointing to turmoil at CBS under Skydance ownership and noting that Ellison will have significant influence over appointments. Mark Thompson will remain CNN’s editor-in-chief.
Trump has also continued to criticize CBS’s coverage under Skydance, but he maintains a long relationship with the Ellison family. In April, Paramount’s chief reportedly hosted a dinner in Washington honoring Trump on the same day Warner shareholders approved the merger. In June, two days after the Justice Department declined to intervene, Ellison attended a UFC match on the White House lawn for Trump’s 80th birthday, streamed by Paramount+.
The closing of the deal marks the end of a turbulent chapter for Warner Bros. Discovery and the beginning of a new era for Skydance, which now stands as one of the most powerful forces in entertainment.
Source: www.breitbart.com — https://www.breitbart.com/entertainment/2026/10/06/paramount-warner-bros-deal-is-done-heres-how-hollywood-giant-skydance-was-born/