Paramount completes massive merger with Warner Bros., forming Hollywood giant Skydance
路透社2026/10/06 12:49The merged company’s total debt amounts to approximately $80 billion. David Ellison and co-CEO Ynon Kreiz face a $6 billion cost-cutting target. The senior management teams at CNN and CBS News will remain unchanged. Anzar Mehraj / Harshita Mary Varghese, Reuters, October 6 — Paramount-Skydance (PSKY.O) completed its $110 billion blockbuster acquisition of Warner Bros. Discovery (WBD.O) on Tuesday, giving rise to a Hollywood giant named Skydance and placing CEO David Ellison in charge of one of the world’s largest entertainment companies. The deal combines the studios behind “Mission Impossible”, “Harry Potter”, and DC Films with major TV and streaming networks such as CBS, CNN, Paramount+, and HBO Max, creating a massive entertainment company encompassing film, television, and news. On Tuesday, the merged company’s stock moved from Nasdaq to the New York Stock Exchange, trading under the ticker “SKYD”. A settlement agreement reached with a coalition of several US states and the Hollywood writers’ union (link) cleared one of the main legal obstacles to this landmark media merger. The move comes as Hollywood faces declining cable TV subscriptions, costly battles over streaming viewers, and ongoing union pressure regarding jobs and protections for creative workers. Last week, Ellison stated (link) that the choice of the name “Skydance” was intended to preserve the independent identities of the Paramount and Warner Bros. studios, rather than folding them into a new brand. However, analysts note that the name reinforces Ellison’s control, highlighting that some of Hollywood’s most iconic brands now answer to him and providing a platform for his own strategies and culture. In just 16 years, Skydance has evolved from an independent studio into a central player in one of Hollywood’s most powerful deals. Founded in 2010 by the son of Oracle co-founder Larry Ellison, it gained prominence as the financier and producer behind Paramount’s blockbuster “Top Gun: Maverick”. After merging with Paramount last year (link), Skydance set its sights on Warner Bros., not only engaging in a fierce bidding war with Netflix (NFLX.O) but also attracting interest from other potential buyers, including Comcast (CMCSA.O). Broader Hollywood ambitions Ellison has appointed former Mattel CEO Ynon Kreiz as Skydance’s co-CEO, responsible for day-to-day operations and integration, while Ellison will oversee creative direction and overall strategy. The two must consolidate the two giant companies while achieving the planned $6 billion in cost savings. Paramount stated that a significant portion would come from “non-labor costs”—specifically, integrating the streaming technology and cloud service providers of both companies. However, such wide-ranging cuts are expected to impact jobs across Hollywood. The merged company is projected to carry around $80 billion in debt, putting pressure on Ellison to develop streaming business, sustain cash flow from cable networks, and boost box office performance. CNN President Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their leadership roles at Skydance (link). (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of automated translation texts and provides them solely for reader convenience. Reuters bears no responsibility for any damage or loss arising from the use of automated translation functions.)
Anzar Mehraj/Harshita Mary Varghese
Reuters, October 6 - Paramount-Skydance (PSKY.O) completed on Tuesday its blockbuster $110 billion acquisition of Warner Bros Discovery (WBD.O), creating a Hollywood giant named Skydance and putting CEO David Ellison in control of one of the world’s largest entertainment companies.
This deal consolidates the studios behind Mission: Impossible, Harry Potter, and DC Films with major television and streaming networks such as CBS, CNN, Paramount+, and HBO Max, forming a vast entertainment company spanning film, TV, and news operations.
On Tuesday, shares of the merged company moved from the Nasdaq to trade on the New York Stock Exchange under the ticker symbol "SKYD".
A settlement reached with a coalition of multiple U.S. states and the Writers Guild of America (link) removed one of the main legal obstacles to this, one of the largest M&A deals in media history. The move comes as Hollywood faces declining cable subscriptions, costly battles for streaming audiences, and persistent union pressure over jobs and creative worker rights.
Last week, Ellison said (link) the choice of the name "Skydance" was to preserve the independent identities of Paramount and Warner Bros. studios, rather than merging them under a new brand.
However, analysts noted that the name reinforces Ellison’s control, highlighting that some of Hollywood's most iconic brands are now under his command, giving him a platform to pursue his own strategies and culture.
In just 16 years, Skydance has evolved from an independent studio into a major power player in Hollywood. The company was founded in 2010 by the son of Oracle co-founder Larry Ellison and gained fame as the financier and producer of Paramount's blockbuster "Top Gun: Maverick."
Following its merger with Paramount last year (link), Skydance set its sights on Warner Bros, engaging in a fierce bidding war not just with Netflix NFLX.O but also attracting interest from other potential buyers, including Comcast CMCSA.O.
Broader Hollywood Ambitions
Ellison appointed former Mattel CEO Ynon Kreiz as co-CEO of Skydance, who will oversee daily operations and lead the integration efforts, while Ellison will supervise creative direction and overall strategy.
The two are tasked with integrating the two large companies while achieving a planned $6 billion in cost savings. Paramount stated that a large part of these savings would come from "non-headcount expenses"—namely integrating streaming technology and cloud service providers across the two companies. However, cuts of this scale are expected to impact jobs across the Hollywood ecosystem.
The merged company is also expected to carry about $80 billion in debt, putting pressure on Ellison to grow the streaming business, maintain cable network cash flow, and boost box office performance.
CNN President Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their leadership roles at Skydance (link).
(To facilitate non-English speakers, Reuters provides automated translations of its reports into several other languages. Because automated translation may contain inaccuracies or lack required context, Reuters does not guarantee the accuracy of these translations and provides them solely for the convenience of readers. Reuters accepts no liability for any damages or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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