Paramount has completed its $81 billion takeover of Warner Bros Discovery, creating one of the largest media and entertainment companies in Hollywood under the Skydance name. The new entity combines major entertainment and news brands including HBO Max, Warner Bros, CNN, and Paramount+. The deal brings together two of America’s oldest and most influential movie studios. The combined company is headed by billionaire David Ellison and co-Chief Executive Officer, Ynon Kreiz.
The transaction, which includes Warner’s debt, is valued at close to $111 billion. This represents one of the biggest mergers in the history of the media and entertainment industry. The takeover further concentrates ownership in a sector already dominated by a small number of major companies. The deal also carries significant political undertones, given the Ellison family’s relationship with United States President Donald Trump.
The road to the acquisition was marked by an intense bidding war involving Paramount and Netflix. Warner initially reached a studio and streaming agreement with Netflix in December after indicating that it was considering a sale of all or part of its business. Paramount subsequently launched a hostile bid, arguing that Warner’s management had not meaningfully engaged with its earlier proposals.
The contest intensified in early 2026, with Warner repeatedly backing Netflix as its preferred buyer. Netflix eventually withdrew after Paramount increased its offer to $31 per share for the entire company. Paramount and Warner subsequently signed a mutual merger agreement in late February. The proposed merger drew strong opposition from sections of Hollywood.
Thousands of actors, writers, directors, and other industry professionals signed an open letter in April opposing the transaction. The signatories, including Jane Fonda, Mark Ruffalo, Denis Villeneuve, and J.J. Abrams, warned that the merger could result in fewer jobs and less choice for audiences. Others, however, supported Ellison and his pledge to maintain Paramount’s commitment to theatrical movies.
Concerns over the future of CNN also featured prominently in the takeover debate. President Donald Trump has repeatedly criticised CNN’s coverage, while members of his administration openly expressed support for a change in the network’s ownership. Ellison has pledged to maintain editorial independence at CNN, saying the company had not discussed news coverage with political leaders.
Skydance is retaining Mark Thompson as CNN’s editor. The new company, Skydance, will oversee a vast media portfolio, including CBS, ‘Top Gun’, and ‘The Godfather’. David Ellison said, “Today is a historic day, not just for Skydance but for our entire industry. We couldn’t be more excited to get to work.”
Key points
- The takeover combines major entertainment and news brands including HBO Max, Warner Bros, CNN, and Paramount+.
- The deal is valued at close to $111 billion, including Warner’s debt.
- The merger drew strong opposition from sections of Hollywood over concerns about jobs and audience choice.
