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Paramount completes $81 billion takeover of Warner Bros Discovery in Hollywood mega-merger to form Skydance
Warner Bros Discovery's HBO Max, CNN and Harry Potter will now sit alongside Paramount+, CBS, Top Gun and The Godfather under the new combined company.
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Hollywood's latest mega-merger is complete. Paramount has closed its $81 billion takeover of Warner Bros Discovery, combining two of the industry's biggest names. The combined company will operate under the name Skydance and will be led by billionaire David Ellison and new co-CEO Ynon Kreiz.
The deal brings together two of America's oldest movie studios and creates a new entertainment giant spanning film, television, streaming and news.
Warner Bros Discovery's HBO Max, CNN, Discovery networks and franchises such as Harry Potter and Sinners will now sit alongside Paramount+, CBS and iconic Paramount titles including Top Gun and The Godfather.
ALSO READ | Paramount and Warner Bros Discovery will be named Skydance, announces David Ellison
Ellison's Skydance acquired Paramount for about $8 billion last year before turning its attention to Warner Bros Discovery. What followed was a months-long battle involving competing bids, Hollywood opposition, political scrutiny and antitrust challenges.
Including Warner Bros Discovery's debt, the transaction is valued at nearly $111 billion, making it one of the biggest deals in media and entertainment history.
"Today is a historic day, not just for Skydance but for our entire industry," Ellison said in a statement Tuesday, as per AP. "We couldn't be more excited to get to work."
How the Paramount-Warner deal came together
Warner Bros Discovery earlier indicated it was open to selling parts or all of its business as it considered options for the future. In December, it reached an agreement with Netflix involving its studio and streaming operations.
Paramount soon entered the contest, launching a bid for the entire Warner Bros Discovery business, including CNN and Discovery's television networks. Paramount said Warner management had not meaningfully engaged with its earlier proposals.
The resulting bidding battle dominated Hollywood's attention in early 2026. Warner's leadership initially backed Netflix, but Paramount eventually raised its offer to $31 per share.
Netflix subsequently withdrew from the race, allowing Paramount and Warner Bros Discovery to reach a merger agreement in February.
Hollywood voiced opposition
The proposed merger drew a strong response from actors, directors, writers and other entertainment professionals concerned about further consolidation in the industry.
ALSO READ | Film quotas, penalties and LA jobs: The deal that saved Paramount-Warner Bros merger
In April, thousands of Hollywood professionals signed an open letter expressing their "unequivocal opposition" to the Paramount-Warner deal. The signatories included actors Jane Fonda and Mark Ruffalo and filmmakers such as Denis Villeneuve and JJ Abrams. The group warned of fewer jobs and "less choice for audiences in the United States and around the world".
Paramount, meanwhile, sought to reassure Hollywood that it remained committed to theatrical movies. At CinemaCon, the company presented a short film about Paramount directed by Jon M. Chu and narrated by Tom Cruise.
Director James Cameron also publicly supported Ellison. The merger remained a subject of discussion during awards season. At the Emmy Awards last month, actor Sally Field, who had opposed the deal, stressed that "unique storytelling matters" and said creative voices should not be "silenced, or compromised or merged".
CNN emerged as one of the most politically sensitive parts of the Warner takeover because of President Donald Trump's repeated criticism of the network.
Antitrust challenges delayed the deal
The takeover faced its biggest legal hurdle in July, when attorneys general from 12 US states sued to block the merger.
Led by California Attorney General Rob Bonta, the states argued that combining the two companies would reduce competition and limit choices for consumers, including moviegoers and cable subscribers.
The Writers Guild of America also filed a legal challenge. The legal disputes threatened to delay the transaction into next year.
Settlement agreements reached in September removed a key obstacle to the merger. Under the settlement, Paramount agreed to increase film production in the US over the next five years and establish a fund worth millions of dollars to support workers affected by the merger. The company also agreed to additional editorial safeguards involving CNN and CBS.
A judge subsequently approved the settlement, clearing the way for the transaction to close.
