Paramount finalizes $81 billion Warner Bros. Discovery deal, creating Skydance media empire
Paramount completed its $81 billion acquisition of Warner Bros. Discovery on Tuesday, Oct. 6, 2026, merging the two giants under a new corporate umbrella called Skydance.
The combined entity now controls a slate of iconic brands—including Warner Bros., Paramount Pictures, HBO, HBO Max, Paramount+, CNN, CBS, CBS News, and a host of cable networks such as MTV, Comedy Central and BET—along with historic film studios and a massive library of intellectual property.
David Ellison, chairman and chief executive of the newly formed company, called the transaction “a historic day, not just for Skydance but for our entire industry,” and said the merger will “empower creatives, entertain audiences and reward shareholders.”
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a press release.
Ellison will share leadership with Ynon Kreiz, a former Mattel chief executive who was appointed co‑CEO. Together they acknowledged that integrating two massive operations will involve “difficult decisions that affect our workforce,” hinting at forthcoming cost‑cutting measures and potential layoffs.
The deal, valued at roughly $111 billion including debt, was sealed after a prolonged legal battle with twelve Democratic state attorneys general. The settlement requires Skydance to invest an additional $1.5 billion in U.S. film production over five years, release at least 30 films annually in theaters, and establish an independent editorial board overseeing CNN and CBS News. Mark Thompson will remain CNN’s top executive, while Bari Weiss continues as editor‑in‑chief of CBS News.
Skydance will begin trading on the New York Stock Exchange under the ticker “SKYD.” Warner Bros. shareholders received just over $31 per share in cash, and Warner Bros. shares have ceased trading on Nasdaq.
Financing for the merger includes significant capital from sovereign investors in Saudi Arabia, Qatar and the United Arab Emirates. The Federal Communications Commission approved these foreign stakes, which come with restrictions that prevent voting or governance rights.
Industry observers note that the consolidation gives one company control over a broad swath of American media—from blockbuster movie franchises like “Harry Potter” and “Mission: Impossible” to news programming such as “60 Minutes,” “Anderson Cooper 360” and “The Daily Show.” The next steps include integrating the companies’ technology platforms, finalizing cost‑reduction plans, and implementing the editorial safeguards mandated by the settlement.
