Paramount sealed its $111bn takeover of Warner Bros Discovery on Tuesday, creating a media colossus that unites legendary film studios with powerhouse news brands like CNN and CBS.
The deal caps months of legal battles and a fierce bidding contest with Netflix. It also shrinks Hollywood’s legacy studio count, leaving Disney, Universal, and Sony as the remaining independents.
The newly formed entity, operating under the Skydance name, places David Ellison in charge. Ellison, son of Oracle co-founder and billionaire Larry Ellison, will serve alongside former Mattel chief Ynon Kreiz as co-executive. Their portfolio spans Paramount and Warner Bros film operations, HBO Max, CBS News, and CNN.
Ellison called the moment historic for both the company and the wider industry. He emphasized that uniting the two studios creates a stronger competitor with the talent and reach to deliver stories across every genre and platform.
## Legal settlement shapes the merger
Regulators approved the combination back in June, but California, New York, and ten additional states filed suit. Their concern: the merger could crush competition and reduce film output in theaters and streaming.
A settlement reached last month imposes strict requirements. Skydance must release at least 30 films annually and more than 180 television shows. CBS News and CNN must maintain independent editorial boards.
A trustee will monitor compliance, and California Attorney General Rob Bonta has promised court action if the company falls short. Bonta noted the settlement does not signal support for the merger itself, arguing that consolidation in essential markets rarely benefits consumers or competition.
Meanwhile, scrutiny surrounds Ellison’s news leadership. Last year, after acquiring Paramount, he tapped former New York Times opinion writer Bari Weiss to run CBS News despite her lack of television experience. Critics accused the network of tilting toward the Trump administration.
On Monday, CNN chief Mark Thompson confirmed he would stay under Skydance ownership. He expressed confidence that Ellison and his leadership team understand and will protect CNN’s tradition of independent journalism.
