Daijiworld Media Network - New York

New York, Oct 7: Skydance-owned Paramount has completed its $81 billion takeover of Warner Bros. Discovery, bringing two of Hollywood's oldest movie studios under one corporate umbrella and creating one of the biggest media and entertainment companies in the world.

The merger brings HBO Max, CNN and Warner Bros' film and television library, including franchises such as Harry Potter and Sinners, together with Paramount+, CBS and iconic titles such as Top Gun and The Godfather. The combined company will operate under Skydance, led by billionaire David Ellison and co-CEO Ynon Kreiz.

"Today is a historic day, not just for Skydance but for our entire industry," Ellison said. "We couldn't be more excited to get to work."

Ellison's Skydance acquired Paramount for $8 billion last year before turning its attention to Warner Bros. Discovery. The takeover followed a roughly year-long bidding battle and, including billions of dollars in debt, brings the total value of the transaction to nearly $111 billion.

The merger ranks among the largest deals in media and entertainment history and further consolidates an industry already dominated by a small number of major players.

Warner had initially reached a studio and streaming agreement with Netflix in December after indicating that it was open to selling all or part of its business. Paramount subsequently launched a hostile bid, arguing that Warner's management had not meaningfully engaged with its earlier offers.

The two companies competed for much of early 2026, with Warner's leadership repeatedly backing Netflix. Netflix eventually withdrew from the race after Paramount increased its offer to acquire the entire company for $31 per share. Warner and Paramount signed a mutual merger agreement in late February.

The proposed merger also drew significant opposition from sections of Hollywood. In April, thousands of actors, writers, directors and other entertainment professionals signed an open letter opposing the deal, warning that it could result in fewer jobs and less choice for audiences.

Among those who signed the letter were Jane Fonda, Mark Ruffalo, Denis Villeneuve and J.J. Abrams. Others, including director James Cameron, backed Ellison and his stated commitment to theatrical movie releases.

The takeover also attracted political attention, particularly over the future of CNN. US President Donald Trump has repeatedly criticised CNN's coverage, while his administration publicly commented on the possibility of a change in ownership during the takeover process.

Ellison has said CNN's editorial independence will be maintained. Skydance is retaining Mark Thompson as CNN's editor-in-chief and has agreed to establish a News Editorial Independence Board under a settlement reached with states that challenged the takeover.

The deal also received substantial financial backing from Saudi Arabia, Qatar and the United Arab Emirates. The Federal Communications Commission approved Paramount's request for significant indirect ownership by investors from the three Gulf countries.

Paramount had earlier disclosed that the foreign investors were expected to indirectly hold nearly 50 per cent of Skydance's equity interests without voting rights. The company later sought approval for ownership of up to 100 per cent to accommodate potential future investments, which the FCC granted.

The approval drew criticism from FCC Democratic Commissioner Anna Gomez and others, who raised concerns about the potential for foreign influence.

The takeover also faced legal challenges. Paramount cleared antitrust reviews by the US Department of Justice and regulators worldwide, but attorneys general from 12 states led by California's Rob Bonta sued in July to block the merger, arguing that it would reduce competition and consumer choice.

The Writers Guild of America also filed a lawsuit against the deal.

Settlements reached in September removed the remaining major legal obstacles. Under the terms approved by a judge, the combined company agreed to increase film production in the United States over the next five years, contribute millions of dollars to a fund supporting workers displaced by the merger and establish additional editorial oversight for CNN and CBS.

With the settlements clearing the way, Paramount has now completed the Warner Bros. Discovery takeover, creating a major new force spanning Hollywood film studios, television networks and streaming platforms.