David Ellison Completes $81 Billion Merger of Paramount and Warner Bros. Discovery
The acquisition creates a new media giant, Skydance, after overcoming legal challenges and securing regulatory approval.
David Ellison’s $81 billion merger of Paramount and Warner Bros. Discovery officially closed Tuesday, more than seven months after his winning bid, creating a new media behemoth now known as Skydance.
The combined entity encompasses two historic film studios, major streaming services HBO Max and Paramount+, news divisions CNN and CBS News, live sports channels including CBS Sports and TNT Sports, and a vast library of thousands of iconic movie titles.
The completion of the merger followed the settlement of an antitrust lawsuit filed by California Attorney General Rob Bonta and 11 other state attorneys general. These officials had expressed concerns that the deal could stifle competition, lead to higher consumer prices, and reduce choices.
To address these concerns, Paramount committed to spending an additional $1.5 billion on domestic production over the next five years and to releasing 30 high-quality theatrical films annually. The terms of this settlement helped clear a major hurdle for the transaction.
David Ellison, CEO of the newly formed Skydance, announced that the company will operate under the Skydance name following the merger's finalization. The deal marks a significant consolidation in the media industry, bringing together prominent entertainment assets under a single corporate umbrella.