Paramount and Warner Bros. Discovery complete $110 billion media megamerger

Paramount has finalized its $110 billion acquisition of Warner Bros. Discovery, merging the two companies into Skydance. The deal creates one of the largest entertainment conglomerates in the world, combining Paramount+ and HBO Max streaming platforms with networks like CBS, CNN, MTV, TBS, Comedy Central, and Food Network. Skydance will also gain ownership of prestigious franchises such as "The Lord of the Rings," "Game of Thrones," the DC Universe, and "Yellowstone."

The merger solidifies the control of entertainment giant David Ellison, who previously merged Skydance Media with Paramount last year. The Ellison family, led by Larry Ellison's son David, is the main shareholder in Skydance, backed by Larry Ellison's substantial fortune. Legal settlements with U.S. states and Hollywood writers' unions cleared the path for the merger.

Last February, Paramount announced its intention to acquire Warner Bros., following a competitive bidding process with Netflix, which had already acquired Warner Bros.' film and television studios and streaming services, excluding cable networks. Paramount sweetened its offer by guaranteeing shareholders additional cash if the deal didn’t close and agreeing to cover Warner Bros.' breakup fee to Netflix.

"Today marks a historic day, not just for Skydance but for our entire industry," stated Ellison. "Our goal was to unite these iconic studios to form a formidable competitor with unparalleled talent, resources, and reach to produce exceptional content across all genres and platforms for global audiences. Now, we turn our attention to the future, aiming to build a company that nurtures creatives, captivates audiences, and pleases shareholders.

We are thrilled to embark on this journey." Skydance's annual revenue will reach approximately $70 billion. Skydance Class B shares will start trading on the New York Stock Exchange today under the symbol "SKYD."