Paramount completes $111bn acquisition of Warner Bros to form new media empire Skydance

On Tuesday, media conglomerate Paramount completed its $111 billion acquisition of Warner Bros Discovery, officially forming a new media empire named Skydance. The consolidation brings together some of the world's most recognizable studios and news outlets under the leadership of David Ellison and Ynon Kreiz, co-executives of the new company. Ellison, the son of tech mogul Larry Ellison, and Kreiz, former CEO of Mattel, will oversee Paramount and Warner Bros' film studios, HBO Max, CBS News, and CNN.

Ellison stated, "Today is a historic day, not just for Skydance but for our entire industry. From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere." The merger not only completes the consolidation of the last five legacy studios in Hollywood but also merges Paramount with Warner Bros, two of the largest studios in the industry.

The acquisition faced scrutiny from California, New York, and 10 other states, who sued Paramount over concerns that the move would "extinguish" competition in both movie theaters and at home. As part of the settlement agreement, Skydance is required to release a minimum of 30 films per year and more than 180 television shows. Additionally, CBS News and CNN are obligated to maintain independent editorial boards, with a trustee monitoring Skydance's compliance with the terms of the settlement.

Californian Attorney General Rob Bonta expressed his preparedness to take legal action if Skydance fails to adhere to the settlement terms. The merger also raises concerns about the potential influence of Ellison's decision-making, particularly over CNN, following his tenure at CBS News. Critics argue that the merger exacerbates market consolidation, potentially harming the American economy, consumers, and competition.