Paramount completes $111bn takeover of Warner Bros., forming Skydance

The merger creates Skydance, combines two major studios and streaming services, and raises concerns over layoffs and subscription costs.

By Felo News Desk · Published Tue, 06 Oct 2026 21:44:15 GMT

Paramount finalized its acquisition of Warner Bros. Discovery on Tuesday, Oct 6, 2026, creating a new media conglomerate called Skydance, according to Independent and Gizmodo.

What happened

The deal closed on Oct 6, merging Paramount's portfolio with Warner Bros. Discovery's assets, including film studios, streaming platforms Paramount+ and HBO Max, and news networks CBS and CNN. The transaction value is reported as $111 billion by Gizmodo and $81 billion by Independent. The combined company will trade under the ticker SKYD on the NYSE, with David Ellison as chairman and CEO and Ynon Kreiz as co‑CEO as noted in the rebrand announcement on Oct 2.

What the reports add

Gizmodo notes that the acquisition follows Paramount’s earlier rebrand to Skydance and cites a press release in which CEO David Ellison called the day "historic" for the industry.
Independent adds that Ellison said HBO should remain "HBO" and that the combined streaming services will eventually be unified under a single offering, though the name and pricing remain undecided.
The settlement with 12 states requires the new company to distribute 30 films annually for the next two years and 32 films per year for the following three years, with at least half produced or jointly produced by the combined entity.
Skydance agreed to increase U.S. film‑production spending by at least $1.5 billion over the next five years.
The FCC approved foreign sovereign‑wealth‑fund ownership of up to 49.5% of the merged company’s equity on Sep 17, 2026, granting non‑voting shares to funds from Saudi Arabia, Qatar and Abu Dhabi.
Cindy Holland resigned as Paramount streaming chief on Sep 30, clearing the way for HBO chairman Casey Bloys to oversee the combined streaming business.
A U.S. district judge cleared the antitrust settlement on Oct 1, removing the final legal hurdle for the merger.

What was said

"Today is a historic day, not just for Skydance but for our entire industry," Ellison said in the press release, Gizmodo reported.

"Our viewpoint is, HBO should stay HBO. They built a phenomenal brand, they are a leader in this space and we just want them to continue doing more of it," Ellison told Independent earlier in the year.

"Integrating two companies will bring change, including difficult decisions that affect our workforce," the employee memo read, per Variety and cited by Gizmodo.

Mark Ruffalo condemned the merger, saying it will stifle creativity and weaken free speech, as noted in the judge‑approval filing.

Mark Thompson, chairman of CNN, told employees he was convinced Skydance executives would maintain CNN’s independence, according to a memo reported by The New York Times.

How it came about

The merger follows a series of regulatory and corporate steps documented by Felo News. The FCC approved foreign ownership stakes on Sep 17, 2026 (fcc-approves-foreign-ownership-paramount). Cindy Holland resigned as Paramount streaming chief on Sep 30, clearing the way for HBO chairman Casey Bloys to oversee the combined streaming business (cindy-holland-resignation-paramount-streaming). A federal judge cleared the antitrust settlement on Oct 1, removing the final legal hurdle (paramount-warner-merger-approval). The rebranding to Skydance was announced on Oct 2 (paramount-warner-skydance-rebrand).

Key facts

Paramount's acquisition of Warner Bros. Discovery closed on Oct 6, 2026. (independent.co.uk)
The new company will be called Skydance. (gizmodo.com)
The deal value is reported as $111 billion (Gizmodo) and $81 billion (Independent). (gizmodo.com)
CEO David Ellison said HBO should remain HBO and called the day historic. (gizmodo.com)
A memo to employees warned of upcoming layoffs as the companies integrate. (gizmodo.com)