Paramount Skydance Corporation Completes Acquisition and Merger with Warner Bros. Discovery, Creating a “Media Giant”

[Financial News] Paramount Skydance Corporation has finalized its acquisition and merger with Warner Bros. (WB) Discovery in a deal valued at $110 billion (about 148 trillion won), heralding the birth of an entertainment giant set to shake up Hollywood and the global media market. The world is watching to see what seismic shifts the merger of the two giant studios, each with a history spanning more than 100 years, will bring to the global media market amid heavy debt burdens and changes in how audiences watch content.
On the 6th (local time), the BBC reported that the giant entertainment company emerging from the merger, finalized after months of legal disputes and antitrust concerns, would take the name Skydance Corporation, the name of the existing company founded by chairman David Ellison.
The merger will bring major broadcasting and content brands—including Home Box Office (HBO), CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network—under one roof. In addition to its existing hit franchises such as Indiana Jones, Mission: Impossible and Shrek, Paramount Pictures will also acquire ownership of Warner Bros.’ globally popular major franchises, including Harry Potter, Game of Thrones and The Lord of the Rings.
Ellison, chairman and CEO of Skydance, said, “Our goal was to bring two legendary studios together and create a strong competitor that could deliver outstanding stories to audiences around the world.” He added, “Now that ambition has become a reality.”
U.S. President Donald Trump also sent a congratulatory message on the merger, saying, “With so many talented people coming together, it will be a wonderful company.”
The leadership reshuffle also moved quickly. While chairman Ellison will oversee strategy and technology, Ynon Kreiz, the former Mattel CEO who recently resigned, will join as co-CEO and take charge of day-to-day management and integration. CNN Worldwide will continue to be led by chairman and editor-in-chief Mark Thompson, and CBS News by editor Bari Weiss.
Casey Bloys, who has led content at HBO and Max, will oversee the combined streaming division. Mike Proulx, an analyst at Forrester Research, said, “It is a positive that HBO executives will be in charge of the combined streaming business, but they may be forced to cut costs under enormous debt pressure, which could make maintaining content quality a challenge.”
The merger faced difficulties from the outset. After Netflix, which had participated in the initial bidding, dropped out midway amid competition from Paramount, attorneys general from 12 U.S. states, including California, sued to block the merger, citing concerns that it would deepen monopoly power, drive up prices for consumers and harm movie theaters.
But a dramatic agreement between Paramount and U.S. state governments last month cleared the way for approval. Under the agreement, Paramount will establish an independent news editorial board to ensure independent and objective reporting by CNN and CBS.
Strict production guidelines have also reportedly been drawn up to protect the theater ecosystem and jobs.
California Attorney General Rob Bonta, who led the lawsuit, said the agreement “will prevent Hollywood from being filled with AI-generated movies and ensure a genuine film production ecosystem that will create meaningful jobs and stimulate the economy.”
[email protected] Yoon Jae-jun Reporter