Skydance has finalized its $81 billion acquisition of Warner Bros. Discovery, creating a media colossus that unites two of Hollywood’s most storied studios under one corporate banner. The deal closed Tuesday after a year of contentious negotiations, celebrity backlash, and political pressure.
Billionaire David Ellison now oversees a portfolio that includes HBO Max, CNN, Paramount+, CBS, and franchises from “Harry Potter” to “Top Gun.” Ynon Kreiz joins him as co-CEO. Total transaction value reaches roughly $111 billion when outstanding debt gets factored in.
The path to this merger proved anything but smooth. Warner initially pursued a studio and streaming arrangement with Netflix in December. Paramount countered with offers Warner leadership reportedly never seriously considered. A hostile bid followed. Netflix withdrew after Paramount raised its per-share offer to $31, clearing the way for a February merger agreement.
Hollywood’s creative class mobilized against the consolidation. An April open letter signed by Jane Fonda, Mark Ruffalo, Denis Villeneuve, and J.J. Abrams warned of job losses and diminished audience choice. Meanwhile, Tom Cruise and James Cameron publicly backed Ellison. At CinemaCon, Skydance screened a promotional film directed by Jon M. Chu, with Cruise delivering the closing line: “The future is paramount.”
Political entanglements complicated the narrative. President Donald Trump has repeatedly attacked CNN’s coverage. Secretary of Defense Pete Hegseth told reporters in March, “The sooner David Ellison takes over that network, the better.” Ellison has promised editorial independence for CNN, retaining Mark Thompson as editor-in-chief. A settlement with state attorneys general mandated creation of a News Editorial Independence Board.
Foreign money played a significant role. Saudi Arabia, Qatar, and the United Arab Emirates supplied billions in financing. The FCC approved indirect ownership up to 100% from those investors, a decision critics called unprecedented and alarming.
Twelve Democratic attorneys general sued to block the deal in July, alleging it would extinguish competition. Settlements reached in September required Skydance to boost U.S. film production, fund worker displacement assistance, and maintain editorial oversight structures. Critics dismissed those remedies as insufficient, but they removed the final barriers to closing.
