Skydance Completes $81 Billion Acquisition of Warner Bros. Discovery
Skydance completes $81 billion Warner Bros. Discovery acquisition; Ellison leads combined entity.
Event / Economy
Paramount-Warner Bros Discovery Merger
Paramount's $81 billion acquisition of Warner Bros. Discovery completed on October 7, 2026, creating a major consolidated Hollywood conglomerate. The year-long process included competing bids, regulatory antitrust challenges, and settlement agreements with worker protections and editorial independence safeguards.
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2026-10-07 to 2026-10-30 · UTC publication dates
Coverage begins 7 Oct, 01:49 UTC
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What happened
Hollywood actors and filmmakers opposed Paramount-Warner Bros. merger
Thousands of industry professionals, including actors Jane Fonda and Mark Ruffalo, publicly opposed the Paramount-Warner Bros. merger. Industry professionals signed an April letter urging regulators to stop the deal.
Paramount completes $81 billion acquisition of Warner Bros. Discovery
Paramount completed its $81 billion acquisition of Warner Bros. Discovery on October 7, 2026, combining major Hollywood studios, television networks and streaming services under a new company called Skydance. The transaction, including debt, amounted to nearly $111 billion and brought Warner Bros., HBO, CNN, CBS, Paramount Pictures, HBO Max and Paramount+ under the same corporate roof, along with major franchises including Harry Potter, Game of Thrones, Top Gun and Mission: Impossible.
Federal judge temporarily blocked Paramount-Warner Bros. merger in July 2026
A federal judge temporarily blocked the Paramount-Warner Bros. merger in July 2026 following a lawsuit by 12 Democratic state attorneys general, who alleged the combined company would weaken competition in theatrical film distribution and cable television. The block was later lifted after the September settlement.
David Ellison leads combined Paramount-Warner Bros. company as co-CEO
Skydance founder David Ellison will lead the combined Paramount-Warner Bros. company alongside co-CEO Ynon Kreiz. Ellison's Skydance had previously combined with Paramount in August 2025, after which he pursued the acquisition of Warner Bros. Discovery.
Paramount agreed to pay Warner Bros. shareholders $31 per share
Paramount agreed to pay Warner Bros. Discovery shareholders $31 per share following a monthslong bidding war with Netflix. Warner Bros. had initially backed a competing Netflix deal before Paramount launched a hostile bid for the entire company.
Skydance targeting $6 billion in cost synergies within three years
Skydance announced it is targeting at least $6 billion in run-rate synergies within three years from the combined Paramount-Warner Bros. operations.
Department of Justice cleared Paramount-Warner Bros. merger in June 2026
The U.S. Department of Justice cleared the Paramount-Warner Bros. transaction in June 2026 after concluding it was unlikely to harm competition or American consumers.
Paramount and Warner Bros. reached merger agreement in February 2026
Paramount and Warner Bros. Discovery reached a merger agreement in February 2026, ending a competitive bidding process that had included Netflix as a rival bidder.
Paramount secured foreign investment from Gulf state investors
Paramount relied on billions of dollars from investors tied to Saudi Arabia, Qatar and the United Arab Emirates to help finance the Warner Bros. acquisition. Saudi Arabia's Public Investment Fund, the Qatar Investment Authority and Abu Dhabi-based L'imad Holding were disclosed as outside financing partners. The Federal Communications Commission approved the foreign investors' indirect ownership interests, with the Gulf investors agreeing to forgo voting and governance rights.
Ellison threatened to relocate Paramount operations outside California
In August 2026, David Ellison told senior Paramount executives he was prepared to begin moving the company out of California if Democratic Attorney General Rob Bonta refused to enter settlement negotiations. Paramount was reported to be shopping for approximately 400,000 square feet of office space in Nashville as it weighed shifting operations away from California.
Skydance listed on New York Stock Exchange following deal closure
Skydance began trading on the New York Stock Exchange on October 7, 2026, following the closure of the Paramount-Warner Bros. merger.
Paramount settles antitrust lawsuit with 12 Democratic state attorneys general
Paramount reached a settlement agreement in September 2026 with 12 Democratic state attorneys general who had sued to block the merger in July. The settlement included court-enforceable safeguards requiring Paramount to spend an additional $1.5 billion on U.S. film production over five years, release at least 30 films in theaters annually, and establish new editorial oversight mechanisms for CNN and CBS.
Tom Cruise and James Cameron publicly support Paramount-Warner merger
At CinemaCon in spring 2026, Paramount showcased support from major filmmakers. Tom Cruise narrated a promotional film directed by Jon M. Chu, standing atop the Paramount water tower, while director James Cameron publicly doubled down on his support for CEO David Ellison and the merger.
Skydance faces $80 billion debt and must achieve $6 billion in cost synergies
Following the merger close, Skydance is saddled with approximately $80 billion in debt. The company has committed to achieving $6 billion in run-rate cost synergies within three years and has set financial targets for 2030 including $10 billion in free cash flow, mid-single-digit annual revenue growth, and adjusted EBITDA margins in the mid-20s.
Paramount settles with states over merger antitrust concerns
In September 2026, Paramount reached settlement agreements with the 12 states that had sued over the merger. The settlement terms, approved by a judge, include commitments to increase U.S. film production over five years, commit millions to a fund supporting workers displaced by the merger, and establish editorial monitoring boards for CNN and CBS.
President Trump attacks CNN and expresses support for new ownership
President Donald Trump publicly criticized CNN, calling it a spreader of 'poison and lies' and stating that people running it were 'a disgrace,' declaring that 'it's imperative that CNN be sold.' Secretary of Defense Pete Hegseth later stated in March 2026 that 'the sooner David Ellison takes over that network, the better.'
Netflix withdrew from bidding war for Warner Bros. Discovery
Netflix initially struck a studio and streaming deal with Warner Bros. Discovery in December 2025, but withdrew from the bidding process when Paramount increased its offer to $31 per share for the entire company. Warner and Paramount inked a mutual merger agreement by late February 2026.
FCC Commissioner Anna Gomez criticizes foreign investment approval as alarming
FCC's sole Democratic Commissioner Anna Gomez called the approval of up to 100% indirect ownership from Gulf countries 'alarming and unprecedented,' arguing that the amount of foreign capital could open the door to behind-the-scenes influence over the merged company.
Twelve state attorneys general sue to block Paramount-Warner merger
In July 2026, democratic attorneys general from 12 states, led by California's Rob Bonta, filed a lawsuit to block the merger, alleging the combined company would 'extinguish competition' and reduce consumer choices, particularly for movie theatergoers and cable customers. The Writers Guild of America also filed suit.
Saudi Arabia, Qatar, and UAE provide billions in financing for Warner acquisition
To fund the Warner Bros. Discovery acquisition, Paramount secured billions of dollars in financial backing from three Gulf countries: Saudi Arabia, Qatar, and the United Arab Emirates. The FCC approved Paramount's request for sizable indirect ownership from these foreign investors, granting clearance for up to 100% potential equity interests with no voting rights.
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