Paramount-Warner Bros Mega-Merger to Become Skydance
$110 Billion Hollywood Merger Nears October 6 Close
Paramount Skydance and Warner Bros Discovery will come under a new corporate parent called Skydance when their roughly $110 billion transaction closes, which is expected on October 6.
Paramount Skydance CEO David Ellison announced the name on Friday, saying the aim was to give the combined company its own identity while preserving the Paramount and Warner Bros brands.
The deal will create one of the world's largest entertainment groups, bringing together studios behind franchises including Mission: Impossible and Harry Potter, along with CBS, CNN, Paramount+ and HBO Max.
Skydance Corporation is expected to become the company's legal name on October 6. Its Class B shares are also set to move from Nasdaq to the New York Stock Exchange under the ticker SKYD, replacing PSKY.
The merger cleared a major legal hurdle this week when a US judge approved a settlement with 12 states that had sued to block the deal, arguing it could reduce competition, increase prices and reduce film and television output.
The legal battle also carried a political dimension. The challenge was brought by 12 Democratic state attorneys general, while Ellison has argued that some opposition reflected concerns over who would ultimately control CNN. Democratic lawmakers had separately raised concerns about the future editorial independence of CNN and CBS News under Ellison. The states' formal lawsuit, however, was based on antitrust claims.
The settlement includes the creation of an independent News Editorial Independence Board intended to safeguard journalistic autonomy at CNN and CBS News.
The combined company is targeting around $6 billion in savings while managing roughly $80 billion in debt. Ellison will focus on long-term strategy and creative direction, while departing Mattel CEO Ynon Kreiz will become co-CEO at closing and oversee day-to-day operations and integration.
