Paramount Completes $111 Billion Acquisition of Warner Bros. Discovery, Forming Skydance

In a landmark transaction reshaping the media landscape, Paramount, led by David Ellison, officially completed its acquisition of Warner Bros. Discovery (WBD) on October 6, creating a new corporation named Skydance with projected annual revenues approaching $70 billion.

The deal, valued at $111 billion, marks the conclusion of a turbulent months-long bidding war that saw Paramount defeat streaming giant Netflix, which had initially offered $82.7 billion for select studio and streaming assets. Paramount’s final offer of $31 per share was deemed superior by WBD’s board, prompting Netflix to withdraw from negotiations in late February.

The merger faced significant regulatory and legal headwinds. Although the U.S. Department of Justice approved the transaction in June, a coalition of twelve state attorneys general filed a lawsuit on July 13 arguing the deal would stifle competition and harm consumers. A federal judge issued a temporary pause, but approved a settlement in late September, clearing the path for the merger’s completion.

Financial concerns were also prominent; the combined entity will assume approximately $33 billion in WBD debt on top of Paramount’s existing liabilities. The deal is backed by substantial equity from Larry Ellison, founder of Oracle and major donor to President Donald Trump, alongside a $54 billion debt commitment from major financial institutions including Bank of America, Merrill Lynch, Citigroup, and Apollo Global Management.

Controversy surrounded the acquisition due to Ellison’s ownership of CBS News and perceived alignment with the Trump administration. Critics, including senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal, raised antitrust concerns prior to the deal. Additionally, tensions arose regarding editorial independence, particularly at CNN, as Trump has previously pressured media outlets critical of his administration.

Looking ahead, Skydance plans to integrate its streaming services, including Paramount+, HBO Max, and Discovery+, into a unified platform. Ellison has also indicated that significant workforce reductions are expected as part of the restructuring.