Paramount Skydance has completed its $110 billion takeover of Warner Bros Discovery, creating one of Hollywood’s largest entertainment and media companies and putting CEO David Ellison in control of a sprawling portfolio of film studios, television networks, streaming platforms and news businesses, Reuters reported.
The deal brings together some of the industry’s biggest franchises and brands, including Warner Bros, DC Studios, Harry Potter and Mission: Impossible, alongside CBS, CNN, Paramount+, HBO Max and other television and streaming assets.
Ellison targets Netflix, Big Tech and AI
The new company, which will operate under the Skydance name, comes at a time when traditional media businesses are being squeezed by declining cable-TV subscriptions, expensive streaming competition and the rise of technology platforms and independent creators.
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In a memo to employees, Ellison said the objective was not simply to build a larger company but to create a next-generation media and entertainment business capable of taking on the industry’s biggest players.
Speaking to reporters on Tuesday, Ellison argued that legacy media companies had been slow to respond to the disruption caused by streaming platforms such as Netflix and Amazon Prime Video.
The combined company will now compete not only with Netflix and Disney, but also with technology giants including Apple, Amazon and Meta, while <a href="https://axiomcore.info/georgia-tech-announces-new-online-masters-degree-in-artificial-intelligence/” title=”Georgia Tech Announces New Online Master’s Degree in Artificial Intelligence”>artificial intelligence emerges as another major challenge for the entertainment industry.
The transaction marks another major transformation of a media empire that was once controlled by the late Sumner Redstone.
Skydance had itself evolved rapidly since its founding in 2010 by David Ellison, son of Oracle co-founder Larry Ellison. The studio initially gained prominence as a producer and financial backer of Paramount films, including Top Gun: Maverick.
It merged with Paramount last year before turning its attention to Warner Bros Discovery. The Warner Bros deal followed a competitive bidding process that also attracted interest from Netflix and other potential buyers.
Shares of the combined company began trading on the New York Stock Exchange under the ticker “SKYD” on Tuesday, moving from Nasdaq.
The merger also creates a significant news business, bringing CNN and CBS News under the same corporate umbrella. CNN chief Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their respective positions and report separately to Ellison and co-CEO Ynon Kreiz.
The structure comes amid concerns over editorial independence and political influence, particularly following criticism of Ellison over CBS News’ coverage.
As part of the deal’s regulatory settlement, Ellison agreed to establish an editorial independence board overseeing CNN and CBS. Critics, however, have questioned whether the board will have enough authority to influence the company’s news operations.
Also Read – Paramount-Warner Bros merger company to be named Skydance: All you need to know
Deal clears major legal hurdles
The transaction was completed after settlements with a coalition of US states and a Hollywood writers union removed major legal barriers to the merger.
The deal comes as Hollywood continues to grapple with high streaming costs, shrinking traditional television audiences and disputes over employment and creative-worker rights.
Warner Bros shareholders also received an additional $41.9 million “ticking fee”, based on the number of days between the end of September and the closing of the transaction, according to a regulatory filing.
Also Read – Paramount Skydance names leadership team for planned Warner Bros. Discovery combination
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First Published on October 7, 2026, 09:01:49 IST
