Paramount completes $110bn takeover of Warner Bros Discovery

Paramount Skydance has completed its $110bn takeover of Warner Bros Discovery, creating a major new force in Hollywood and the wider media industry, according to the BBC.

The deal combines two of Los Angeles’s largest studios after months of legal disputes and criticism that further consolidation could weaken competition and harm consumers. It brings together brands including “HBO”, “CBS”, “Nickelodeon”, “Showtime”, “Comedy Central”, “DC Studios” and “Food Network”.

The merged company will be renamed “Skydance Corporation”. David Ellison, who founded Skydance and now leads the combined business, said the new corporate identity was not intended to diminish either studio or its brands.

“We wanted a name that would give the combined company an identity of its own while allowing Paramount and Warner Bros — and all our extraordinary brands — to remain in the spotlight,” Ellison said on social media.

The takeover followed a bidding contest in which “Netflix” initially had an agreement to buy part of Warner Bros Discovery. “Paramount” later made a competing offer, and “Netflix” withdrew.

Lawsuits filed by attorneys in about a dozen US states, led by California, sought to block the merger. The states argued it could restrict competition, push up consumer prices and harm cinemas and cable distributors, as well as audiences.

A settlement reached last month between the states, “Paramount” and Ellison cleared the way for the deal. Under the agreement, the company must establish a news editorial independence board to support independent, objective and fact-based reporting at “CNN” and “CBS”.

Editorial independence had become a concern at “CBS” after it was taken over in 2025 as part of a separate merger between “Skydance Media” and “Paramount”. Ellison has said that editorial independence would be maintained.

The agreement also requires “Paramount” to release at least 30 films annually and to produce at least 20% of its films in the United States for the first two years. That share must rise to more than 30% over the following three years.

The deal includes restrictions on using low-budget or automated productions to meet the annual film quota, including safeguards against AI-generated films. If the company fails to meet its quota, it must sell its 49% stake in “Miramax”.

California Attorney General Rob Bonta, who led the legal action and settlement, said the agreement was intended to ensure the studios make “real, robust movies” that generate economic activity and create jobs.

“Warner Bros” has won more than 100 Academy Awards during its 103-year history. “Paramount” also has more than 100 Oscars, with past awards for films including “The Godfather” and “Titanic”.

The merger brings together franchises including “Harry Potter”, “Game of Thrones”, “The Lord of the Rings” and “Mission: Impossible”. The future of “CNN” remains uncertain as the combined company takes shape.