Paramount acquires Warner Bros in $110bn Hollywood merger

Hollywood's landscape has been reshaped as Paramount Skydance officially completed its takeover of Warner Bros Discovery in a massive $110bn merger. The union of two major Los Angeles studios follows months of legal disputes and widespread criticism regarding potential market consolidation, competition harms, and consumer impacts, while also leaving news outlet CNN in uncertain territory.

Stock photo for illustration only, not from the actual event

The megadeal brings together major entertainment entities including HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios, and Food Network. Paramount acquires ownership of legendary franchises like Harry Potter, Game of Thrones, and The Lord of the Rings, adding them to its existing roster featuring Indiana Jones, Mission: Impossible, and Shrek.

The newly formed entertainment behemoth will operate under the name Skydance Corporation, founded by David Ellison. Ellison appointed outgoing Mattel chief executive Ynon Kreiz as co-chief executive to handle day-to-day operations and integration, while Ellison focuses on strategy and technology. Meanwhile, Mark Thompson continues as chairman and editor-in-chief of CNN Worldwide, Bari Weiss remains at CBS News, and Casey Bloys takes charge of direct-to-consumer content.

"From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality"

David Ellison

Stock photo for illustration only, not from the actual event

To secure settlements with US states, led by California Attorney General Rob Bonta, the merged company agreed to strict oversight. Paramount must release at least 30 films every year, faces strict guardrails against AI-generated movies, and must maintain a minimum of 20% domestic production in the US for the first two years, rising past 30% thereafter, or risk forfeiting its 49% stake in Miramax.