Paramount and Warner Bros. Discovery Complete $110 Billion Merger into Skydance

Paramount Global and Warner Bros. Discovery finalized a $110 billion merger on Tuesday, forming a new entertainment giant called Skydance under the leadership of CEO David Ellison.

The newly formed corporation immediately began structural changes on Tuesday. NBC News reported that employees logging on to Warner Bros. laptops were met by a new logo signaling a change in leadership, while similar branding was added below the Warner Bros. water tower in Burbank and at the company’s New York City office. CEO David Ellison and newly appointed co-CEO Ynon Kreiz, the former head of Mattel, issued a "Day 1" memo to staff pledging to write the next chapter of the combined studios.

As part of the consolidation, Skydance announced that HBO Max, Paramount+, and Discovery+ will unify into a single service over time. According to Ars Technica and The Verge, this move is intended to simplify technology and help the company compete with Netflix, which reported 325 million subscribers in January. HBO CEO Casey Bloys is expected to lead the combined streaming efforts, though specific details regarding the name and timeline of the unified platform have not been finalized.

The merger also brings CNN and CBS News under one roof. To address editorial independence concerns raised by state attorneys general, the company agreed to appoint an independent editorial board to oversee both news networks. Al Jazeera reported that Mark Thompson will remain editor-in-chief at CNN for now, while Bari Weiss continues her role at CBS News. However, the combined company carries $80 billion in debt, leading to fears of potential layoffs and consolidation within the news divisions.

The settlement that allowed the deal to close includes specific content commitments. NBC News and Al Jazeera reported that Skydance is required to release 30 films per year for the first two years of the deal. This agreement helped resolve a legal challenge led by California Attorney General Rob Bonta and other state officials who argued the merger could reduce competition and threaten the sustainability of the creative community.

Background

The merger faced a yearlong journey involving lawsuits from unions and state attorneys general. The deal was cleared for completion after Skydance reached a settlement on September 21, 2026, which addressed concerns regarding journalistic independence at CNN and the volume of film production.