Paramount and Warner Bros. Merge, Creating a New Hollywood Giant

One of Hollywood’s historic deals has been completed. Paramount acquired Warner Bros. Discovery for $110 billion and merged with the company, creating a new entertainment giant under the Skydance name.

The merger is considered one of the largest deals in the film and television industry. In addition to two major streaming platforms—Paramount+ and HBO Max—the new company also includes well-known television networks such as CBS, CNN, MTV, TBS, Comedy Central and Food Network.

Through the merger, Skydance has also gained control of some of the world’s best-known film and television franchises. These include major properties such as “The Lord of the Rings,” “Game of Thrones,” the DC Universe and “Yellowstone.” David Ellison will be the key figure in the new company’s leadership. He had already significantly increased his influence in the company last year by completing the merger of Skydance Media and Paramount. The Ellison family is currently Skydance’s largest shareholder, and the multibillion-dollar fortune of his father, Oracle co-founder Larry Ellison, is also one of the main financial pillars behind the business.

Before the deal was completed, the companies faced a number of legal obstacles. Agreements reached with several US states and the Hollywood screenwriters’ union made it possible to resolve the main legal issues.

Interestingly, Paramount’s main rival in the battle for Warner Bros. was Netflix. Netflix had previously reached an agreement to acquire Warner Bros.’ film and television studios and streaming business. However, Paramount gained the upper hand by making a more attractive offer and ultimately completed the deal itself.

The new Skydance company is expected to generate nearly $70 billion in annual revenue. The company’s Class B shares will begin trading on the New York Stock Exchange under the ticker “SKYD.”