Paramount takes over Warner Bros in $110bn Hollywood merger

Paramount Skydance has acquired Warner Bros. Discovery in a monumental $110 billion merger, set to transform the Hollywood and media industry. This consolidation, following intense legal battles and concerns over potential job losses, will significantly impact streaming services for millions and alter the landscape of film and TV.

The merger brings together a vast array of entities such as HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios, and Food Network. Paramount will now own legendary franchises including Harry Potter, Game of Thrones, and The Lord of the Rings, expanding its existing portfolio of hit series like Indiana Jones, Mission: Impossible, and Shrek.

The emerging conglomerate will be rebranded as Skydance Corporation, the entity founded by David Ellison before his takeover of Paramount and Warner Bros Discovery. Ellison, now chairman and CEO of Skydance, emphasized the historic nature of the merger, aiming to create a formidable competitor with a diverse range of storytelling abilities across all platforms for global audiences.

The merger has attracted praise from US President Donald Trump, who called it "great," and welcomed Ynon Kreiz, former CEO of Mattel, as co-CEO, focusing on the day-to-day operations and integration process. Ellison will concentrate on strategy and technology. Meanwhile, Mark Thompson, former BBC director general, will serve as chairman and editor-in-chief of CNN Worldwide, while Bari Weiss retains her role as editor-in-chief of CBS News.

Casey Bloys, previously in charge of HBO and Max Content, will also oversee direct-to-consumer content as co-chair and chief content officer. The merger, cleared by competition authorities across the globe, has faced some controversy, including lawsuits from about a dozen US states, which argued it would stifle competition, raise consumer prices, and harm movie theaters and cable distributors.

To address these concerns, the merged company has established a "news editorial independence board" to ensure unbiased, objective reporting at CNN and CBS. This move comes amid concerns over editorial independence at CBS since its acquisition in 2025. Ellison has assured that editorial independence will be maintained, though concerns remain.

Warner Bros boasts more than 100 Academy Awards, including a record-breaking 11 for One Battle After Another and Sinners and Weapons, while Paramount has won over 100 Oscars as well, with its last win in 2022 for Top Gun: Maverick. The deal includes strict guidelines to prevent the production of low-budget or AI-generated films, requiring Paramount to release at least 30 films annually, with 20% of productions taking place in the United States.

Failure to meet these standards could result in the company selling its 49% stake in Miramax, the film company founded by Harvey Weinstein and his brother Bob.