Completion of the merger and corporate restructuring

David Ellison completed the $111 billion merger of Paramount Skydance and Warner Bros. Discovery on Tuesday, establishing a combined company operating under the name Skydance Corporation. The transaction unites Paramount and Warner Bros. film studios, the Paramount+ and HBO Max streaming platforms, and television brands including HBO, CBS, Nickelodeon, Showtime, Comedy Central, and DC Studios. Ellison and co-CEO Ynon Kreiz announced a multiyear plan to manage approximately $80 billion in debt that the combined entity now carries. Following the close, Skydance President Andy Gordon outlined a new executive lineup in an internal memo, naming Tony Driscoll as president of games and experiences, Josh Silverman for consumer products and publishing, Jose Turkienicz for global operations, and Jim Sterner as chief people officer. Studio executives Michael De Luca and Pamela Abdy departed Warner Bros. Discovery following the takeover.

Regulatory path and legal settlements

The transaction moved forward after overcoming challenges from a California-led coalition of 12 Democratic state attorneys general and the Writers Guild of America. The US Department of Justice approved the merger without conditions in June, but a federal judge temporarily suspended the deal in late July before both antitrust challenges were settled in September. Under the agreement approved by a judge on 30 September, Skydance agreed to cinema production targets, worker support commitments, and protections for news operations that include an editorial independence board. Netflix had previously agreed to purchase part of Warner Bros. Discovery before walking away when Paramount launched a competing offer.

Newsroom control and political reactions

The consolidation brings CNN and CBS News under unified ownership, drawing scrutiny over newsroom independence. Larry Ellison, the co-founder of Oracle and father of David Ellison, is a primary financial backer of the deal and has previously donated to Donald Trump and Israel. Trump praised the transaction at the White House on Tuesday.

They're terrific people, and it's going to be a great company.

David Ellison stated that earlier legal challenges were politically motivated and insisted that journalists across CNN and CBS News will answer strictly to facts rather than political parties. Critics of the transaction raised objections over media consolidation, leading to vocal opposition from public figures.

This merger will stifle creativity, weaken free speech and cost people their jobs.

Democratic Senator Elizabeth Warren also opposed the consolidation, warning against concessions while Trump attempted to restrict White House media access for news networks. Ellison maintained that editorial firewalls will remain intact under the new governance structure.

Financial performance and production targets

Wall Street reacted with caution following the transaction's completion. Shares in Skydance, trading under the ticker SKYD on the New York Stock Exchange, fell nearly 8% on Wednesday morning to around $8.82 after closing at $9.51 on Tuesday. Fitch Ratings downgraded Skydance's credit rating on Monday, citing debt leverage, linear television revenue pressures, and streaming competition. TD Cowen analyst Doug Creutz advised investors to hold their shares, citing operational integration risks. On 13 October, the company will distribute 471.3 million warrants with a $12 strike price to Class B shareholders. As part of its commitments, Skydance must produce 30 films annually for the next two years, 32 per year for the following three years, and release four independent films each year.