Meridian Markets
Skydance-owned Paramount closed its takeover of Warner Bros. Discovery on Tuesday, combining the two studios, their television networks and their streaming services into a single company renamed Skydance. The deal brings together CBS, Paramount+, MTV and BET with HBO Max, CNN, the Warner Bros. film library and other assets under one corporate roof.
David Ellison, chairman of Skydance Media, is chief executive of the combined company. Ynon Kreiz, a longtime media executive, serves as co-CEO alongside him. Combined, Paramount+ and HBO Max now count more than 200 million global streaming subscribers.
The close followed a settlement reached roughly a week earlier that resolved months of controversy which had delayed the merger. The agreement, struck with state attorneys general over antitrust concerns, requires Skydance to release at least 30 to 32 films annually in theatres through 2031.
The path to closing stretched back nearly a year. Warner Bros. Discovery first struck a studio and streaming agreement with Netflix (NFLX) in December. Paramount returned with a higher offer the following February, raising its bid to $31 per share; Netflix withdrew and Warner Bros. Discovery signed a merger agreement with Paramount instead. In April, thousands of Hollywood figures, including actress Jane Fonda, signed an open letter opposing the merger, while actor Tom Cruise appeared in a promotional video backing Paramount during the fight.
The settlement with state attorneys general came on September 29, clearing the way for the deal to close on October 6.
Debt and integration ahead
The combined company carries tens of billions of dollars in debt taken on to finance the acquisition. Skydance has said it aims to reduce leverage to three times within roughly three years and is targeting $6 billion in cost synergies over the same period.
Two days after closing, Ellison and Kreiz appeared on CNBC to outline their goals for the merger, including the synergy targets and a plan to pay down debt while unifying the companies’ streaming services over time. Ellison has said the combined company is positioned to compete across film, television and streaming.
The merger consolidates two of Hollywood’s legacy studios at a moment when streaming economics and theatrical release strategy remain under pressure industry-wide. How Skydance integrates overlapping networks, services and franchises, and how it manages its debt load while pursuing cost savings, will shape its standing against rival studios and streamers in the period ahead.