Brief
Paramount‑Warner merger raises questions for France’s cultural exception
The creation of Skydance after Paramount’s $110 bn purchase of Warner Bros. Discovery may test France’s “cultural exception” rules on foreign audiovisual services.
By Felo News Desk · Published
France 24 says the completion this month of Paramount’s $110 billion acquisition of Warner Bros. Discovery has created Skydance, a media conglomerate that now includes Warner Brothers, Paramount Pictures, HBO, Paramount+, a large television portfolio and news outlets such as CNN and CBS.
What happened
The deal, which began as a bidding war with Netflix at the end of 2025, received final approval in early October after a federal court rejected a challenge by twelve U.S. states on antitrust grounds. The merger combines the two largest U.S. studio groups into a single entity that will operate under the Skydance name.
What the reports add
France 24 notes that French observers are less concerned with competition for streaming services like Netflix or Canal+ and more focused on whether a heavily indebted, globally‑scaled studio can meet France’s “cultural exception” obligations. The outlet explains that the policy requires foreign on‑demand services targeting French audiences to invest 20‑25 % of their French revenue in European and French‑language productions under the SMAD regime introduced in 2021.
The article also cites the Financial Times, which reports that Skydance began the merger with nearly $80 billion in debt and plans to cut $6 billion in costs over three years through structural and technology savings. One early post‑merger move is a price increase on Discovery+, and the firm intends to eventually combine Paramount+ and HBO Max into a single platform.
What was said
France 24 quotes analysts who argue that the consolidation could actually increase the amount Skydance must invest locally, because a combined Paramount‑HBO operation would aggregate subscription revenue and raise the firm’s contribution under the SMAD regime.
How it came about
The merger follows months of negotiations and a federal ruling that cleared the way for the deal just a week before the October 6 closing date. Earlier Felo News coverage detailed the rebranding of the merged entity as Skydance and the appointment of David Ellison as chairman and CEO, as well as the planned separation of Paramount and Warner Bros. film slates and the eventual unification of the two streaming services.
Key facts
- Paramount completed a $110 billion acquisition of Warner Bros. Discovery, creating Skydance. (france24.com)
- Skydance starts with nearly $80 billion in debt and aims to cut $6 billion in costs over three years. (france24.com)
- France’s SMAD regime requires foreign on‑demand services to invest 20‑25 % of French revenue in local productions. (france24.com)
- Skydance plans to raise Discovery+ prices and eventually merge Paramount+ with HBO Max. (france24.com)
Sources
- [1] france24.com — originally reported as “Will Paramount’s creation of Skydance test France’s cultural exception?”
