Debt in the spotlight as Paramount closes $111bn deal for Warner Bros

Paramount and Warner Bros. Discovery merged to create Skydance, a leading Hollywood conglomerate. The $81 billion deal, announced on Tuesday, combined HBO Max, films like Harry Potter and The Godfather, and networks including CNN under Paramount+, CBS, and other titles. CEO David Ellison leads the new company with Ynon Kreiz. This merger increases concentration of power in an already monopolized industry.

The merger's path was tumultuous, with a year-long bidding war against Netflix. Despite initial talks with Netflix, Skydance-owned Paramount launched a hostile counterbid, eventually securing the purchase for $31 per share. This brought the total acquisition price to nearly $111 billion. The deal cleared antitrust hurdles worldwide and settled legal challenges from 12 US states concerned about reduced competition and audience impact.

Critics, including Hollywood stars, opposed the merger, raising concerns over job losses and audience choice. Despite opposition, the settlement agreements included commitments to increase US film production, workforce training, and maintain editorial independence for CNN and CBS.