Paramount Skydance completes $110bn takeover of Warner Bros Discovery

Paramount Skydance has officially completed its $110bn acquisition of Warner Bros Discovery, a landmark merger that is poised to fundamentally reshape the global entertainment and media landscape.

The consolidation brings together two of Los Angeles’s most prominent studios, combining iconic properties such as HBO, CNN, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios, and Food Network. The newly formed entity will operate under the name Skydance Corporation, reviving the brand originally established by CEO David Ellison before he acquired both companies.

Ellison described the completion of the deal as a historic moment for cinema. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere,” he said. “Now that ambition is a reality.”

The acquisition grants Paramount ownership of major franchises including Harry Potter, Game of Thrones, The Lord of the Rings, and Mission: Impossible. Warner Bros holds a rich legacy with over 100 Academy Awards, recently tying the record for Oscars with 11 wins for films such as One Battle After Another, Sinners, and Weapons. Paramount, tracing its origins to 1912, also boasts more than 100 Oscars, though its studio has faced recent awards droughts, with its last win coming in 2022 for Top Gun: Maverick.

The path to this merger was fraught with controversy. Netflix initially held a deal to acquire a portion of Warner Bros Discovery, but after Paramount Skydance entered a bidding war, the streaming giant withdrew. Subsequently, legal challenges emerged, with lawyers from approximately a dozen US states, led by California, attempting to block the transaction. Critics argued the consolidation would stifle competition, inflate consumer prices, and cause substantial harm to movie theaters, cable distributors, and audiences.

Last month, the states reached a settlement with Paramount and Ellison, allowing the deal to proceed. As part of the agreement, California Attorney General Rob Bonta emphasized the goal of ensuring the merged studios produce “real, robust movies” that generate economic activity and employment.

To address regulatory concerns, the deal imposes strict production requirements. Paramount must release at least 30 films annually; failure to meet this quota will force the company to sell its 49% stake in Miramax, the studio founded by Harvey and Bob Weinstein. Additionally, the agreement mandates that 20% of all film production occurs in the US for the first two years, increasing to over 30% in the subsequent three years. The settlement also includes safeguards against relying on low-budget or automated content, specifically restricting “AI-generated” films from counting toward production quotas.

Editorial independence, particularly regarding news outlets, remains a focal point. The merger includes the creation of a “news editorial independence board” designed to ensure objective, fact-based reporting at CNN and CBS. Concerns have been raised following CBS’s takeover in 2025 as part of a separate Skydance Media and Paramount merger. Ellison, who hosted a dinner for President Donald Trump earlier this year, has stated his commitment to maintaining editorial freedom within the new organization.

The merger is expected to have significant implications for streaming services and consumers, potentially altering pricing and content availability across the industry.