Business 4 min read By Mason Emerson
Skydance Closes Warner Bros. Discovery Deal as Ellison Outlines Streaming and Studio Plans
David Ellison's Skydance has completed its acquisition of Warner Bros. Discovery, with the new leadership team outlining plans to combine HBO Max and Paramount+, keep both Hollywood lots, and defend political meetings amid regulatory scrutiny.
Skydance has officially closed its acquisition of Warner Bros. Discovery, placing chairman and CEO David Ellison and co-CEO Ynon Kreiz at the helm of a newly combined entertainment giant. The executive team marked the completion of the hard-fought deal with an on-the-record press conference at the Paramount lot in Hollywood, arriving in jeans and ready to outline their vision for the merged company.
The most significant strategic shift announced involves the company's streaming future. Ellison said HBO Max and Paramount+ will eventually merge into a single service, though not immediately. «Long-term, the plan is basically to bring them together,» he explained, describing a «short-term» phase during which the two platforms will operate as separate but bundled offerings. The phased approach is designed to ease the transition for subscribers and allow the company to maximize the value of both services before full integration.
On the production side, Skydance plans to transform the historic Paramount and Warner Bros. lots into specialized hubs. Under the terms of a settlement in a state attorneys general lawsuit, the combined company must keep both lots operational for at least the next five years. The plan is to dedicate each lot to either film or television and streaming production, giving each historic property a distinct focus. This move is expected to streamline operations while preserving the legacy of both studios.
Ellison also addressed his meeting with President Donald Trump, which took place while the Paramount-Warner Bros. Discovery merger was under regulatory review. He defended the conversation, stating, «For absolute clarity, we have not talked to any political leader of any party about news, other than to say that...» The comment was aimed at quelling concerns that the discussion touched on the future of CNN, which is part of the Warner Bros. Discovery portfolio. Ellison's remarks sought to draw a clear line between business discussions and any political influence over editorial operations.
Despite the industry-wide decline in cable television, Skydance sees continued value in the content from its core cable brands, including MTV and Food Network. While prestige series such as the Game of Thrones spinoff House of the Dragon, Harry Potter programming, and Taylor Sheridan's Landman often dominate headlines, the company recognizes that these cable channels generate billions of dollars in revenue. The new leadership intends to leverage this extensive library and brand recognition as part of its broader content strategy.
The press conference, held just hours after the acquisition officially closed, signaled a new era for the combined company. With Ellison and Kreiz at the helm, Skydance is positioning itself to compete aggressively in both streaming and traditional television while navigating the complex regulatory and political landscape that surrounds major media mergers. The integration of Paramount and Warner Bros. Discovery is expected to reshape the entertainment industry, creating a powerhouse with a diverse portfolio of brands, franchises, and production capabilities.
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