Paramount has closed its $81 billion takeover of Warner Bros Discovery, combining two of the industry’s biggest names. Hollywood’s latest mega-merger is complete. The combined company will operate under the name Skydance and will be led by billionaire David Ellison and new co-CEO Ynon Kreiz.
The deal brings together two of America’s oldest movie studios and creates a new entertainment giant spanning film, television, streaming and news. “We couldn’t be more excited to get to work. Director James Cameron also publicly supported Ellison. The merger remained a subject of discussion during awards season.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement Tuesday, as per AP. At the Emmy Awards last month, actor Sally Field, who had opposed the deal, stressed that “unique storytelling matters” and said creative voices should not be “silenced, or compromised or merged”.
In December, it reached an agreement with Netflix involving its studio and streaming operations. Paramount soon entered the contest, launching a bid for the entire Warner Bros Discovery business, including CNN and Discovery’s television networks. Netflix subsequently withdrew from the race, allowing Paramount and Warner Bros Discovery to reach a merger agreement in February.
The resulting bidding battle dominated Hollywood’s attention in early 2026. Warner’s leadership initially backed Netflix, but Paramount eventually raised its offer to $31 per share.
Paramount said Warner management had not meaningfully engaged with its earlier proposals.
Warner Bros Discovery earlier indicated it was open to selling parts or all of its business as it considered options for the future.
