Paramount has completed its $110 billion acquisition of Warner Bros Discovery, bringing two of Hollywood’s biggest entertainment businesses under one corporate umbrella and creating a new company known as Skydance.
The transaction closed on October 6, 2026, after months of bidding, regulatory scrutiny and legal challenges. The deal now gives Skydance control of major film and television studios, streaming platforms, news networks, sports assets and some of the world’s most recognisable entertainment franchises.
David Ellison, who led Paramount Skydance through the takeover, now serves as chairman and chief executive of the combined company. Ynon Kreiz, the former Mattel chief executive, serves as co-CEO and will play a key role in integrating the two businesses.
In a statement announcing the completion, Ellison described the transaction as a major moment for the entertainment industry.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said, adding that his focus would be on “building a company that empowers creatives, entertains audiences and rewards shareholders.”
The newly formed Skydance brings together Paramount Pictures and Warner Bros. Pictures, two of Hollywood’s historic studios. It also combines Paramount+ and HBO Max, alongside television assets including CBS, HBO and numerous cable networks previously controlled by Warner Bros Discovery.
The entertainment library now available to the combined company includes major franchises such as Harry Potter, DC, Game of Thrones, Top Gun, Star Trek, Mission: Impossible, Barbie and SpongeBob SquarePants.
The merger therefore gives Skydance access to a vast catalogue that spans movies, television, animation and other forms of entertainment.
Streaming represents one of the biggest strategic reasons behind the combination.
Paramount already operated Paramount+, while Warner Bros Discovery controlled HBO Max. Skydance now has both services and plans to eventually bring them together into a single streaming offering.
However, the two platforms will not disappear overnight. Skydance is expected to move through a period of integration and bundling before completing the longer-term combination. The company has not yet announced all the details surrounding the future platform, including its final branding and pricing structure.
The combined streaming operations give Skydance more than 200 million subscribers across its services, strengthening its position as it competes with Netflix, Disney and major technology companies.
The company will also have to balance its larger content library against the cost of producing and distributing that content globally.
Beyond entertainment content, Skydance faces the difficult task of integrating two large corporate organisations.
The company has set a target of achieving at least $6 billion in annual run-rate savings within three years. The savings plan will involve areas such as technology, procurement, marketing and other overlapping operations.
The cost-cutting programme has also raised concerns about jobs. In a message to employees, Ellison and Kreiz acknowledged that integrating the two companies would bring significant changes.
“Integrating two companies will bring change, including difficult decisions that affect our workforce,” the executives said.
Skydance now owns both CNN and CBS News, putting two major news organisations under the same corporate parent.
CNN chairman and editor-in-chief Mark Thompson is staying in his role, while CBS News continues under editor-in-chief Bari Weiss. The companies have also agreed to establish an editorial independence board following regulatory challenges to the merger.
The arrangement was part of concessions made as Paramount sought to resolve opposition from a coalition of US state attorneys general.
The regulatory settlement also required the company to maintain a significant level of theatrical production. Paramount committed to releasing at least 30 films annually during the first two years following the merger. It also agreed not to sell or close the Paramount or Warner Bros. studio lots in Los Angeles for at least five years.
The completion of the acquisition marks a major shift in Hollywood.
Skydance now controls two major movie studios, two major streaming services, television networks, sports operations and major news brands. The company plans to produce at least 30 theatrical films annually and more than 180 television shows and series.
