Paramount completes takeover of Warner Bros. to form Skydance
Paramount completed its takeover of Warner Bros. on October 6, 2026, uniting two major Hollywood studios into a single media entity renamed Skydance under the control of CEO David Ellison.
The Skydance Merger and Financial Backing
The newly formed Skydance brings together Paramount Pictures, Warner Bros. Pictures, CBS News, CNN, HBO, and CBS television brands. France 24 reported that the transaction values Warner Bros. Discovery shares at about $31 per share in cash, with Skydance shares beginning to trade on the New York Stock Exchange under the ticker “SKYD.”
To fund the acquisition, Paramount secured $47 billion in new equity. Major financial backing came from the Ellison family, private equity firm RedBird Capital, and the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi. Oracle founder Larry Ellison provided major funding and a guarantee to lenders backing the deal. David Ellison stated that the transaction marks a historic day for the industry.
Skydance targets nearly $70 billion in annual revenue and aims for more than $6 billion in cost savings within three years. David Ellison serves as chairman and CEO, while former Mattel chief Ynon Kreiz serves as co-CEO to manage day-to-day operations and business integration.
FCC Approves Foreign Ownership Despite Antitrust Lawsuits
The Federal Communications Commission approved indirect foreign ownership by the Gulf investors allowing up to 100% future equity holding in Skydance without voting rights. Anna Gomez, the FCC’s only Democratic commissioner, raised concerns that the foreign investment level could permit undue behind-the-scenes influence.
The U.S. Justice Department and international regulators cleared antitrust approvals for the acquisition over the summer. In July, attorneys general from 12 states led by California filed a lawsuit to block the merger over concerns regarding decreased competition and reduced consumer choices for moviegoers and cable subscribers. The Writers Guild of America also opposed the transaction.
Paramount reached a settlement in September requiring the company to increase domestic film production for five years, contribute millions to a fund supporting affected workers, and implement editorial monitoring for CNN and CBS newsrooms. A federal judge in California approved the settlement late in September.
Ellison Plans to Merge Paramount+ and HBO Max
David Ellison plans to eventually merge the Paramount+ and HBO Max streaming services. Industry opponents warned that the combined company would cut jobs in Hollywood and reduce annual film production, while news media groups expressed concern over CNN’s independence.
The settlement terms include a board designed to protect CNN’s editorial independence. The transaction closed following a bidding war against Netflix that began in February, with the administration approving the merger in June without demanding business changes.