Paramount completes its takeover of Warner Bros to become one Hollywood
giant known as Skydance
[October 07, 2026] By
WYATTE GRANTHAM-PHILIPS
CHICAGO (AP) — It’s official: Skydance-owned Paramount closed its $81
billion takeover of Warner Bros. Discovery on Tuesday, ushering in a new
Hollywood behemoth.
The merger brings two of America’s oldest moviemaking studios together
under a new name: Skydance.
HBO Max, titles ranging from “Harry Potter” to “Sinners” and networks
such as CNN now also find themselves under the same roof as Paramount+,
CBS and the likes of “Top Gun” and “The Godfather.” All are under the
helm of billionaire David Ellison and his new co-CEO Ynon Kreiz.
“Today is a historic day, not just for Skydance but for our entire
industry,” Ellison said. “We couldn’t be more excited to get to work.”
Ellison’s Skydance bought Paramount for $8 billion last year before
setting its sights on Warner. What followed erupted into a tumultuous,
roughly yearlong fight over the storied Hollywood giant. Including
billions of dollars in debt, the acquisition amounts to nearly $111
billion.
The now-combined Skydance marks one of the biggest tie-ups in media and
entertainment history, further concentrating power in an industry
already run by just a handful of big players. Politics also loomed over
much of the process. The Ellison family has notably held a long
relationship with Republican President Donald Trump, who said Tuesday
that Skydance is “going to be a great company.”
Netflix gets into a bidding war with Paramount for Warner
The early days of Paramount's quest for Warner turned into a messy
bidding war.
Months after disclosing it was open to selling all or part of its
business, Warner initially struck a studio and streaming deal with
Netflix in December.
But Paramount said it also had made offers that Warner management “never
engaged meaningfully” with. It soon launched a hostile counterbid.
The Hollywood giants spent much of early 2026 in a heated back-and-forth
over who had a stronger offer, with Warner leadership repeatedly backing
Netflix as its preferred suitor. But Netflix bowed out after Paramount
eventually upped its offer to buy all of Warner for $31 per share.
Warner and Paramount inked a mutual merger agreement in late February.
Hollywood stars made their thoughts known
Hollywood was closely watching the fight over Warner's future. From
awards shows to online petitions, A-list celebrities and other creatives
made their voices known.
In April, thousands of movie stars, writers, directors and other
professionals announced their “unequivocal opposition” to the
Paramount-Warner merger. An open letter — which was signed by
long-outspoken critics of the deal like Jane Fonda and Mark Ruffalo, as
well as Hollywood heavyweights from Denis Villeneuve to J.J. Abrams —
warned of fewer jobs and “less choice for audiences in the United States
and around the world.”
Others lined up to back Paramount as Ellison reiterated his commitments
to the movies. At CinemaCon, the company debuted a glossy mini movie
about the studio directed by Jon M. Chu and narrated by Tom Cruise — who
ended the spot atop the iconic Paramount water tower, with the words
“the future is paramount and the future looks pretty great from here.”
Director James Cameron also doubled down on his support of Ellison.
The prospect of a new Warner owner also loomed over awards season, from
#BlockTheMerger pins to more subtle nods in acceptance speeches. When
accepting her Emmy last month, “Remarkably Bright Creatures” actor Sally
Field — who also signed the open letter in opposition to the
Paramount-Warner deal — stressed that “unique storytelling matters” and
“we can’t let those voices be silenced, or compromised or merged.”
Many industry critics were also outspoken when Netflix's studio and
streaming deal was on the table, with a particular focus on the future
of movies staying in theaters.
Trump has attacked CNN
Critics are also watching what happens with CNN under Skydance.
Trump has regularly attacked reporting he deems unfavorable at CNN (most
recently attempting to bar the outlet from the White House altogether).
And over the course of the Warner buyout, his administration also chimed
in about hopes for a new owner.
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A Skydance billboard is displayed outside Paramount Global office in
Times Square, Tuesday, Oct. 6, 2026, in New York. (AP Photo/Yuki
Iwamura)
 Days after Paramount launched its
hostile bid for Warner, Trump said CNN spread “poison and lies” and
that it was “imperative” the network be sold. The White House took
aim again at CNN in March, over the network's coverage of the
U.S.-Israeli war against Iran. Secretary of Defense Pete Hegseth
told reporters that “the sooner David Ellison takes over that
network, the better.”
Ellison has said editorial independence will be maintained at CNN.
On Tuesday, he told reporters that the company had "not talked to
any political leader of any party about news — other than to say
that we want to be in the truth business and we want be in the trust
business.”
Skydance is retaining Mark Thompson as CNN’s editor-in-chief. And
under a settlement finalized last month with states that had sued
over the takeover, the company agreed to form a “News Editorial
Independence Board.”
Still, critics point to turmoil already seen at CBS under Skydance
ownership and aren’t convinced this new body will be able to do
much. The company’s corporate board will oversee appointments.
Ellison has maintained a close relationship with Trump overall. He
reportedly hosted a dinner in Washington in Trump’s honor in April,
on the same day Warner shareholders gave their green light for the
merger. In June, just two days after the Justice Department said it
wouldn't intervene in the deal, Ellison attended an Ultimate
Fighting Championship match on the White House lawn for Trump’s 80th
birthday (streamed by Paramount+).
“We have a good relationship with this administration,” Ellison
noted Tuesday. But he said he "also had a really good relationship”
with Democratic President Joe Biden, among other politicians.
3 Gulf countries helped back the deal
To help fund its Warner buyout, Paramount racked up billions of
dollars in financial backing from three Gulf countries: Saudi
Arabia, Qatar and the United Arab Emirates. The Federal
Communications Commission approved the company’s request for sizable
indirect ownership from those foreign investors.
Paramount previously disclosed it expected those funds to indirectly
own nearly 50% of equity interests — but no voting rights — of
Skydance. But the company asked for clearance of up to 100% to
account for potential future investments, which the FCC granted,
citing in part that access to more capital would strengthen the
broadcast industry and was therefore “in the public interest.”
The FCC’s sole Democratic commissioner, Anna Gomez, and other
critics have called the move alarming and unprecedented. They argue
that amount of money opens the door to behind-the-scenes influence.
Legal fights stalled the deal
Paramount cleared antitrust hurdles for its Warner acquisition from
the Justice Department and regulators worldwide over the summer.
But in July, Democratic attorneys general from 12 states — led by
California's Rob Bonta — sued to block the merger, alleging the
combined company would “extinguish competition” and lead to fewer
choices for consumers, particularly movie theatergoers and cable
customers.
The Writers Guild of America followed suit.
Settlements emerged in September. The states' terms, approved by a
judge, include pledges from the company to increase film production
in the U.S. over the next five years, commit millions of dollars to
a fund aimed at supporting workers displaced by the merger and
establish new editorial monitoring of CNN and CBS.
Critics said the remedies were too weak, but the settlements cleared
the way for the deal to close.
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