Paramount takes over Warner Bros in $110bn Hollywood merger

Paramount Skydance has officially completed its $110 billion merger with Warner Bros. Discovery, a deal that will reshape Hollywood and the media industry. This historic merger, which combines two of the largest studios in Los Angeles, brings together iconic franchises such as Harry Potter, Game of Thrones, and The Lord of the Rings, in addition to existing hits like Indiana Jones, Mission: Impossible, and Shrek.

The newly formed entity, rebranded as Skydance Corporation, will operate under the leadership of David Ellison, who previously led both Paramount and Warner Bros. Discovery. Ellison's ambition for the merger was to create a stronger competitor with vast talent, resources, and content reach across various platforms. The deal has garnered support from US President Donald Trump, who praised the collaboration between the two "terrific" studios.

However, the merger process has not been without controversy. Lawsuits from about a dozen US states, led by California, argued that the merger would stifle competition, raise consumer prices, and negatively impact movie theaters, cable distributors, and audiences nationwide. Last month, a settlement was reached, which includes the establishment of a news editorial independence board at CNN and CBS to ensure independent, fact-based reporting.

The merged studios are required to produce a minimum of 30 films annually, with at least 20% of production taking place in the US, increasing to over 30% in the following three years. This new Hollywood behemoth will be led by Ynon Kreiz, former CEO of Mattel, as co-CEO, focusing on the company's day-to-day operations, while Ellison will concentrate on strategy and technology.

Mark Thompson, previously the director general of the BBC, will remain chairman and editor-in-chief of CNN Worldwide, while Bari Weiss continues as editor-in-chief of CBS News. Casey Bloys, who oversees HBO and Max Content, will serve as co-chair and chief content officer for direct-to-consumer content.