Paramount's acquisition of Warner Bros. Discovery creates Skydance media giant
Paramount completed its acquisition of Warner Bros. Discovery on Tuesday, combining two major Hollywood studios under David Ellison's leadership into a company renamed Skydance. The merger brings together major film studios, news networks including CNN and CBS News, and streaming services, though shares dropped more than 4.5 percent on their first day of trading. Critics have expressed concerns that the Ellison family's connections to US President Donald Trump may influence the company's news coverage.
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Paramount finalised its takeover of Warner Bros. Discovery on Tuesday, merging two of Hollywood's oldest and most prominent studios under David Ellison's control. The combined company, renamed Skydance, encompasses Paramount Pictures and Warner Bros. Pictures film studios, alongside the CBS News and CNN news networks, plus HBO and CBS television brands. Ellison indicated plans to eventually integrate the Paramount+ and HBO Max streaming platforms. "Today is a historic day, not just for Skydance but for our entire industry," Ellison stated.
The deal received approval from a federal judge in California less than a week before completion, following a settlement with twelve US states that had challenged the transaction on antitrust grounds. Paramount had previously won a competitive bidding process against Netflix for Warner Bros. in February. On the New York Stock Exchange, Skydance shares fell more than 4.5 percent during their initial trading day under the ticker "SKYD".
Critics have raised concerns regarding the Ellison family's established ties to US President Donald Trump, fearing these connections could influence the company's approach to news coverage. Additionally, analysts note that the merger reflects the technology sector's expanding role in entertainment. Skydance's leadership team includes experienced professionals from Google, Facebook and Scale AI. The company plans to implement artificial intelligence tools throughout its operations. Co-CEO Ynon Kreiz explained that technology would be deployed "to improve how we work; to amplify the creative process; to conceive better ways to engage consumers."
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