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

Paramount and Warner Bros Discovery completed a $110 billion merger on Tuesday, forming a new entertainment giant called Skydance. The deal, led by CEO David Ellison, brings together studios behind major franchises like "Mission: Impossible" and "Harry Potter," as well as CBS, CNN, Paramount+, and HBO Max. Ellison described the merger as a chance to create a next-generation media and entertainment company that will "take on the biggest players in our industry."

The new company will compete with Netflix, Disney, Apple, Meta, and Amazon, as well as face challenges from AI. Shares of the combined company will trade under the ticker "SKYD" on the New York Stock Exchange. The merger removes legal barriers and is seen as a necessary move for Skydance to keep pace with industry disruption. CNN chief Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue their roles in the new company, with Ellison and co-CEO Ynon Kreiz overseeing news operations.

Ellison named Kreiz as co-CEO to lead integration, while Ellison handles creative direction and strategy. The combined company plans to cut costs by $6 billion, streamlining services and releasing 30 films each year for the first two years, with the goal of 32 films annually for the next three years. The company will also carry approximately $80 billion in debt and Ellison has pledged to spend $30 billion or more annually on content.