Paramount completes $111b Warner Bros takeover to create media giant Skydance

Paramount finalized its approximately $111 billion acquisition of Warner Bros Discovery on Tuesday, forming one of the world's largest entertainment conglomerates. The deal combines two of Hollywood's most prestigious studios, Paramount Pictures and Warner Bros, along with a vast media portfolio including HBO, HBO Max, Paramount+, CNN, CBS, and Discovery networks.

The merger also incorporates franchises such as "Harry Potter," "DC superheroes," "Mission: Impossible," and "Top Gun." The new entity, operating under the Skydance name, will be listed on the New York Stock Exchange with the ticker symbol SKYD. David Ellison, founder of Skydance Media and son of Oracle co-founder Larry Ellison, will serve as co-CEO alongside Ynon Kreiz, former CEO of Mattel.

The transaction, valued at around $81 billion in equity and nearly $111 billion including debt, follows a lengthy bidding war and legal disputes over the concentration of power in the film and television industry. The deal required concessions, including a settlement with 11 states mandating the release of at least 30 theatrical films annually, $1.5 billion in additional US production investments, and the establishment of a News Editorial Independence Board to oversee CNN and CBS News.

While the merger creates a powerful media giant, concerns persist regarding the future of the two news organizations and the potential for interference by the combined company's board.