Skydance Completes $81 Billion Takeover of Warner Bros. Discovery

Skydance-owned Paramount finalized its $81 billion acquisition of Warner Bros. Discovery on Tuesday, consolidating two of Hollywood's historic studios under the new banner of Skydance.

The merged entity brings together properties from HBO Max, including the "Harry Potter" franchise and CNN, with Paramount's assets such as Paramount+, CBS, and films like "Top Gun" and "The Godfather." David Ellison leads Skydance as its CEO, with Ynon Kreiz serving as co-CEO.

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

This acquisition follows Skydance's $8 billion purchase of Paramount last year. The total value of the Warner Bros. Discovery deal, including debt, approaches $111 billion, marking one of the largest mergers in media history and further concentrating power within a sector already dominated by a few major players.

Political considerations played a role throughout the process. The Ellison family maintains a long-standing relationship with former President Donald Trump, who commented that Skydance is "going to be a great company."

The path to the merger involved a contentious bidding war. Warner Bros. Discovery had initially pursued a studio and streaming deal with Netflix in December. However, Paramount asserted that its own offers were not meaningfully considered and subsequently launched a hostile counterbid.

Intense negotiations between Warner leadership and potential suitors continued into early 2026. While Warner repeatedly favored Netflix, the streaming giant eventually withdrew after Paramount increased its offer to $31 per share for the entire company. Warner and Paramount reached a mutual merger agreement in late February.

The transaction drew significant attention from Hollywood creatives, with thousands of actors, writers, and directors voicing their opposition in April. An open letter, signed by figures such as Jane Fonda and Mark Ruffalo, warned of potential job losses and reduced audience choice.

Conversely, some industry figures, including director James Cameron, publicly supported Skydance. At CinemaCon, Paramount showcased a film celebrating its legacy, narrated by Tom Cruise, emphasizing a positive future for the studio.

Concerns have also been raised regarding the future of CNN under Skydance's ownership. Former President Trump has frequently criticized CNN's reporting, and his administration expressed hope for a new owner, with Secretary of Defense Pete Hegseth stating, "the sooner David Ellison takes over that network, the better."

Ellison has stated that CNN's editorial independence will be maintained and that the company has not discussed news operations with political leaders. Mark Thompson will continue as CNN's editor-in-chief, and a News Editorial Independence Board is to be established as part of a settlement with states that had sued over the takeover.

Despite these assurances, critics point to past editorial issues at CBS under Skydance and express skepticism about the effectiveness of the new oversight board.

Ellison's ties to Trump include hosting a dinner in his honor in April, coinciding with Warner shareholder approval of the merger. Ellison also attended an Ultimate Fighting Championship event at the White House for Trump's 80th birthday in June, shortly after the Justice Department indicated it would not intervene in the deal.

Ellison noted a good relationship with the current administration while also highlighting past positive relations with Democratic politicians.

Funding for the Warner Bros. Discovery acquisition came from billions of dollars in financial backing from Saudi Arabia, Qatar, and the United Arab Emirates. The Federal Communications Commission approved Skydance's request for significant indirect ownership by these foreign investors, citing the potential strengthening of the broadcast industry.

The FCC's decision, however, drew criticism from its sole Democratic commissioner, Anna Gomez, and others who expressed concern about the potential for behind-the-scenes influence.

Paramount had previously cleared antitrust reviews from the Justice Department and international regulators. However, in July, attorneys general from 12 states filed a lawsuit to block the merger, arguing it would stifle competition and reduce consumer choice.

The Writers Guild of America also filed suit. Settlements were reached in September, with terms including commitments to increase U.S. film production, establish a fund for displaced workers, and implement new editorial monitoring for CNN and CBS. While critics deemed the remedies insufficient, they allowed the deal to proceed.