Paramount and Warner Bros. are now one company called Skydance
Paramount and the owner of Warner Bros., HBO and CNN merged Tuesday into one company called Skydance, led by David Ellison. The $111 billion deal also puts CBS, Paramount+ and HBO Max under one roof. The company plans to fold its two streaming services into one over time, and thousands of layoffs are expected.
Two of Hollywood's oldest studios are now one company. Paramount and Warner Bros. Discovery finished their merger on Tuesday, Oct. 6, and the new company is called Skydance Corp. David Ellison is its chairman and CEO.
The deal is valued at $111 billion, counting the Warner debt that Skydance took on, Variety reported. The company says it will bring in nearly $70 billion a year, but it also carries about $80 billion in net debt. Its stock now trades on the New York Stock Exchange under the ticker SKYD, and Warner shareholders were paid about $31.02 per share in cash.
The new company owns a huge list of brands. They include Paramount Pictures, Warner Bros., HBO, CBS, CNN, Nickelodeon, Cartoon Network, MTV, Comedy Central and Food Network. It also owns two streaming services, Paramount+ and HBO Max. Skydance said those two will be merged "into a single service over time," but it did not give a date.
For viewers, the changes could take a while to show up. HBO chief Casey Bloys will run content for the streaming side, the BBC reported. Mark Thompson stays in charge of CNN, and Bari Weiss stays at CBS News. Former Mattel CEO Ynon Kreiz is co-CEO and will run day-to-day work.
The road here was long. Ellison's Paramount Skydance began its bid more than a year ago and beat out a rival Netflix deal for Warner assets. Then 12 states sued to block the merger. They settled last month. Under that deal, the studio must release at least 30 films a year and set up a board meant to protect the independence of CNN and CBS News.
Critics are not convinced. Free Press, a media advocacy group, told NPR it fears the Ellisons will use their power over the news. Skydance wants more than $6 billion in yearly savings within three years, and Variety reported that thousands of workers are expected to lose their jobs in the coming months.
President Trump called the deal "great" when asked about it, the BBC said.
What we know: The merger is done, and Ellison controls the combined company.
What we don't: When Paramount+ and HBO Max will become one app, or what it will cost.
Where outlets agree Variety, NPR and the BBC all report that the merged company is named Skydance and is led by David Ellison, with Ynon Kreiz as co-CEO.
Where they differ Skydance says its savings will come mostly from technology, marketing and real estate, while Variety reports thousands of layoffs are expected and critics quoted by NPR warn of higher streaming prices.