On Tuesday, October 6, 2026, Paramount completed its takeover of Warner Bros Discovery, uniting two of Hollywood's most storied studios in a media empire spanning television, news, and cinema under the control of David Ellison. The combined company, renamed Skydance, brings together Paramount Pictures and Warner Bros Pictures, the CBS News and CNN networks, and the HBO and CBS television brands. This move marks a significant shift in the media landscape.
Skydance shares began trading on the New York Stock Exchange under the ticker "SKYD," while Warner Bros Discovery shareholders will receive about $31 per share in cash. The deal was made possible after a federal judge in California approved a settlement between Paramount and 12 US states that had sued to block the transaction on antitrust grounds. This settlement paves the way for the creation of a media giant with nearly $70 billion in annual revenue.
David Ellison, CEO of Paramount Skydance, expressed his excitement about the deal, stating that it is a "historic day, not just for Skydance but for our entire industry." Ellison's ultra-wealthy family has ties to US President Donald Trump. The Ellison family holds the largest equity stake in Skydance, with David Ellison's father, billionaire Oracle founder Larry Ellison, providing major funding and a guarantee to lenders backing the deal.
The deal was backed by $47 billion in new equity led by the Ellison family, private equity firm RedBird Capital, and the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi. Ellison will serve as chairman and CEO, with former Mattel chief Ynon Kreiz as co-CEO in charge of day-to-day operations and integrating the two businesses. The combined company aims to achieve more than $6 billion in cost savings within three years.
Opponents in the movie industry had expressed concerns that the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year. News media groups also feared that CNN's independence could be compromised. To address these concerns, the decree includes several safeguards, including a board meant to protect CNN's editorial independence.
The creation of Skydance marks one of the largest-ever media mergers. Paramount won a bidding war against Netflix in February for Warner Bros Discovery, and the Trump administration approved the deal in June, without demanding a change to its business. The merger brings together a range of popular brands, including Paramount+, HBO Max, CBS, and CNN.
In the future, Ellison plans to eventually merge the Paramount+ and HBO Max streaming services over time. With its vast array of brands and services, Skydance is poised to become a dominant player in the media industry. The company's leadership team is confident that the merger will bring significant benefits to shareholders and consumers alike.
Key points
- Skydance, the combined company, will have nearly $70 billion in annual revenue and targets over $6 billion in cost savings within three years.
- The deal was backed by $47 billion in new equity from major investors, including the Ellison family and sovereign wealth funds.
- The merger brings together a range of popular brands, including Paramount Pictures, Warner Bros Pictures, CBS News, CNN, HBO, and CBS television brands.
