Paramount and Warner Bros. Discovery Merge Into New Company Called Skydance

Paramount and Warner Bros. Discovery (WBD) are merging into one company that will operate under the name Skydance, according to Paramount's official announcement of the acquisition and a report by SlashFilm. The deal was first announced on February 27, 2026, and Paramount's press release describes the transaction as an enterprise value of $110 billion, with WBD shareholders receiving $31.00 in cash per share.

What is Skydance, and who runs it

The combined company takes its name from Skydance Media, the production company founded by David Ellison, according to SlashFilm. Ellison becomes CEO of the merged entity and has brought in former Mattel chief executive Ynon Kreiz as co-CEO, SlashFilm reported. Before the merger, Ellison chaired Paramount while David Zaslav led Warner Bros. Discovery, according to Paramount's announcement.

Paramount's press release states that the acquisition is financed through $47 billion in new Class B shares, priced at $16.02 per share and backed by the Ellison family and RedBird Capital Partners, plus $54 billion in debt commitments from Bank of America, Citigroup and Apollo. SlashFilm, citing the scale of the transaction, reported separately that Ellison faces roughly $80 billion in debt tied to the deal, a figure that reflects the company's broader borrowing load rather than the bank financing package alone.

Deal numbers at a glance

Why regulators and a court got involved

According to Fox Business, a coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, sued to block the merger, arguing it would reduce competition and give the combined company excessive market power in film distribution and cable programming. A settlement resolved the suit: the combined company must release at least 30 films per year for two years and then 32 films per year for three more years, including a minimum of four independent releases annually, Fox Business reported. Paramount also committed to spending at least $1.5 billion more on U.S. film production over five years compared with 2025 levels, according to the same report.

A federal judge, identified by Fox Business as U.S. District Judge Araceli Martínez-Olguín, cleared the deal to proceed under those settlement terms, allowing the companies to move toward the October 6 closing date.

Criticism of the deal

Actor Mark Ruffalo, who had publicly opposed the merger, criticized the court's approval, according to Fox Business. Before the settlement was finalized, he had urged Attorney General Bonta on social media not to settle the case, Fox Business reported.

Ruffalo argued the merger would stifle creativity, weaken free speech and cost people their jobs, according to the same report.

What changes for viewers

Under Skydance, SlashFilm reported, the merger brings together film studios including New Line Cinema, DC Studios, Paramount Animation and Warner Animation Group; streaming services HBO Max, Paramount+, Pluto TV, Discovery+ and BET+; television networks such as CBS, HBO, TNT, TBS, HGTV, Food Network, Discovery Channel, Cartoon Network, Adult Swim, Comedy Central, MTV, Nickelodeon and BET; news operations CNN, CBS News and 60 Minutes; and sports broadcasting through CBS Sports and TNT Sports.

• Film studios: New Line Cinema, DC Studios, Paramount Animation, Warner Animation Group
• Streaming: HBO Max, Paramount+, Pluto TV, Discovery+, BET+
• TV networks: CBS, HBO, TNT, TBS, HGTV, Food Network, Discovery Channel, Cartoon Network, Comedy Central, MTV, Nickelodeon, BET
• News: CNN, CBS News, 60 Minutes
• Sports: CBS Sports, TNT Sports

Paramount's announcement describes the rationale for the deal as expanding choice for consumers by combining streaming platforms and sports-rights portfolios, and it cites over $6 billion in anticipated synergies from technology integration and operational efficiencies.