Paramount completes Warner Bros takeover to form media giant Skydance

Paramount has finalized its acquisition of Warner Bros Discovery, forming the media conglomerate Skydance. CEO David Ellison, whose family has connections to US President Donald Trump, hailed it as a "historic day" for the media sector. The deal followed Paramount's victory in a bidding war with Netflix earlier this year. Skydance will combine Paramount Pictures, Warner Bros Pictures, CBS News, CNN, HBO, and CBS television brands under one umbrella.

Ellison intends to merge Paramount+ and HBO Max streaming services in the future. Skydance shares debuted on the New York Stock Exchange on Tuesday with the ticker SKYD, while Warner Bros Discovery shareholders will receive around $31 per share in cash. The acquisition closed just days after a California judge approved a settlement from 12 US states challenging the transaction on antitrust grounds.

The deal, valued at nearly $70 billion and backed by $47 billion in new equity, aims to achieve over $6 billion in cost savings within three years. Ellison will serve as both chairman and CEO, with former Mattel executive Ynon Kreiz co-CEO overseeing daily operations and integration. The merger faces scrutiny from the movie industry, which warns of potential job cuts and reduced film production, as well as concerns over CNN's independence. The decree includes safeguards to protect CNN's editorial integrity.