Skydance-owned Paramount has completed its $81 billion (£61 billion) takeover of Warner Bros Discovery, bringing two of the biggest names in global entertainment under one corporate umbrella.
The merger creates a new media giant, Skydance, combining Paramount’s film and television operations with Warner Bros’ major entertainment, news and streaming assets. The enlarged company now brings together franchises including Mission: Impossible, Top Gun, Harry Potter, Barbie and The Dark Knight, alongside CNN and streaming platform HBO Max.
The deal was completed after settlements were reached with a coalition of US states and a Hollywood writers’ union, removing the final legal obstacles to the transaction.
David Ellison, who heads Skydance, will serve as chief executive and oversee the company’s creative direction and overall strategy. Ynon Kreiz, the former chief executive of Mattel, has been appointed co-chief executive and will handle day-to-day operations.
Paramount expects the merger to generate about $6 billion (£4.5 billion) in cost savings, including through the integration of the companies’ streaming technologies and cloud providers. The group also plans to combine services including HBO Max and Paramount+.
Skydance has said it intends to release at least 30 films a year during each of the first two years following the deal, before increasing production to 32 films annually for the subsequent three years.
The takeover follows Skydance’s acquisition of Paramount last year and a subsequent bidding battle with Netflix for Warner Bros Discovery. Paramount eventually raised its offer to $31 (£23) per share for Warner Bros, prompting Netflix to withdraw from the race.
Paramount and Warner Bros Discovery reached a mutual merger agreement in February, despite opposition from sections of Hollywood. Thousands of actors, writers, directors and other industry professionals later signed an open letter warning that the merger could lead to fewer jobs and less choice for audiences.
The completed transaction marks one of the largest mergers in US media history and significantly reshapes the global entertainment industry, bringing a vast collection of film, television, news and streaming properties under Skydance.
Credit: Sky
