Business 4 min read By Morgan Griffin
Paramount-Warner Bros. $111 Billion Merger Closes, Creating Skydance Corp.
The long-gestating merger of Paramount and Warner Bros. Discovery officially closed Tuesday, creating Skydance Corp. under CEO David Ellison. The $111 billion deal combines major studios, TV networks including CBS and CNN, and streaming services Paramount+ and HBO Max.
Paramount and Warner Bros. Discovery are now a single company. The $111 billion merger officially closed Tuesday, creating Skydance Corp. under the leadership of chairman and CEO David Ellison. The deal brings together two major Hollywood studios, a portfolio of television networks including CBS, CNN, Comedy Central, MTV and TBS, and the streaming services Paramount+ and HBO Max.
Ellison celebrated the closing in a statement, calling it a historic moment for the industry. «Today is a historic day, not just for Skydance but for our entire industry,» he said. The merger, first announced months ago, faced regulatory scrutiny and last-minute legal challenges before receiving final clearance.
Shares in the combined company, Skydance, will begin trading later Tuesday on the New York Stock Exchange. Shares of Paramount and Warner Bros. Discovery have been discontinued on the Nasdaq. The closing marks the end of a long and often uncertain process that reshapes the media landscape.
The new company combines assets that span film and television production, broadcast and cable networks, and direct-to-consumer streaming. Paramount+ and HBO Max will operate under the same corporate umbrella, raising questions about how the two services will be integrated. Casey Bloys, named earlier Tuesday as Co-Chair and Chief Content Officer of Skydance DTC, has signed a multi-year contract extension to lead the integration of the two streaming teams.
The merger also brings a leadership transition at Warner Bros. Discovery. CEO David Zaslav, who led the company through its own merger with Discovery, recorded a farewell message to staff on Monday. «It's been a great honor to be alongside all of you,» Zaslav said in the video, speaking from the Warner Bros. Studios Ranch facility in Burbank. He urged employees to take pride in their work as the company enters a new chapter.
The deal had faced a last-minute effort to halt it. Supreme Court Justice Elena Kagan denied a petition seeking to block the merger, entering the denial into the docket without comment. The petitioners, identified as Pamela Faust, Len Marazzo, Lisa McCarthy and Deborah, had filed an emergency request on Monday. The denial cleared the way for the transaction to close as scheduled.
The combined company now stands as one of the largest media conglomerates in the world, with a portfolio that includes iconic film franchises, news operations and entertainment brands. The integration of Paramount and Warner Bros. Discovery is expected to take months as executives streamline operations, combine streaming platforms and realize cost savings. The merger's completion also signals a new era of consolidation in the entertainment industry, as traditional studios adapt to the dominance of streaming and changing consumer habits.
For now, the focus turns to Ellison and his team as they begin the work of merging two storied Hollywood institutions. The closing of the deal ends a period of uncertainty for employees and investors, but the hard work of integration lies ahead.
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