Paramount wraps up mega Warner Bros merger to create Hollywood powerhouse Skydance

Paramount and Warner Bros Discovery have completed a $110 billion merger to form Skydance, a Hollywood powerhouse. This acquisition combines studios behind blockbuster films like "Mission: Impossible" and "Harry Potter" with major television and streaming networks including CBS, CNN, Paramount+, and HBO Max. CEO David Ellison expressed his vision for the new company to be a next-generation media and entertainment company, powered by creativity and technology, aiming to challenge the biggest players in the industry.

The new entity will face competition from Netflix, Disney, and other tech giants like Apple, Meta, and Amazon, as well as the threat of AI. The merger received approval from settlements with US states and a Hollywood writers union, with the main legal barriers removed. President Trump expressed his support for the deal, calling it a great company and merger.

CNN chief Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their roles and report to Ellison and Kreiz, addressing concerns about potential control over news operations. The new name Skydance was chosen to retain the individual identities of Paramount and Warner Bros studios. Wall Street analysts warn that the name reinforces Ellison's control over the merged company, given his prominent position in Hollywood.

Skydance aims to combine its streaming services and release at least 30 films in the first two years post-merger, with an expected annual revenue growth of $67 billion by 2030.