Paramount Completes $81bn Takeover of Warner Bros in Historic Deal

• New entity combines CNN, CBS, HBO Max, CNN, others

Emmanuel Addeh in Abuja

Paramount has completed its $81 billion takeover of Warner Bros Discovery, creating one of the largest media and entertainment companies in Hollywood under the Skydance name.

The transaction brings together two of America’s oldest and most influential movie studios, placing major entertainment and news brands including HBO Max, Warner Bros, CNN and ‘Harry Potter’ alongside Paramount+, CBS, ‘Top Gun’ and ‘The Godfather’ under one corporate structure.

The combined company is headed by billionaire David Ellison and co-Chief Executive Officer, Ynon Kreiz.

“Today is a historic day, not just for Skydance but for our entire industry. We couldn’t be more excited to get to work,” Ellison said, the Associated Press (AP) reported.

Ellison’s Skydance acquired Paramount for $8 billion last year before turning its attention to Warner Bros Discovery, triggering a roughly year-long battle for control of the Hollywood giant. Including Warner’s debt, the overall value of the transaction is close to $111 billion.

The deal represents one of the biggest mergers in the history of the media and entertainment industry, further concentrating ownership in a sector already dominated by a small number of major companies.

The takeover also carried significant political undertones, given the Ellison family’s relationship with United States President Donald Trump, who on Tuesday described the new Skydance as “going to be a great company.”

The road to the acquisition was marked by an intense bidding war involving Paramount and Netflix. Warner initially reached a studio and streaming agreement with Netflix in December after indicating that it was considering a sale of all or part of its business.

Paramount subsequently launched a hostile bid, arguing that Warner’s management had not meaningfully engaged with its earlier proposals.

The contest intensified in early 2026, with Warner repeatedly backing Netflix as its preferred buyer. Netflix eventually withdrew after Paramount increased its offer to $31 per share for the entire company.

Paramount and Warner subsequently signed a mutual merger agreement in late February.

The proposed merger drew strong opposition from sections of Hollywood, with thousands of actors, writers, directors and other industry professionals signing an open letter in April opposing the transaction.

The signatories, including Jane Fonda, Mark Ruffalo, Denis Villeneuve and J.J. Abrams warned that the merger could result in fewer jobs and less choice for audiences. Others, however, supported Ellison and his pledge to maintain Paramount’s commitment to theatrical movies.

Concerns over the future of CNN also featured prominently in the takeover debate. President Donald Trump has repeatedly criticised CNN’s coverage, while members of his administration openly expressed support for a change in the network’s ownership.

Ellison has pledged to maintain editorial independence at CNN, saying Tuesday that the company had not discussed news coverage with political leaders and wanted to remain in “the truth business” and “the trust business.”

Skydance is retaining Mark Thompson as CNN’s editor-in-chief. As part of a settlement reached with states that challenged the merger, the new company will establish a News Editorial Independence Board to oversee editorial safeguards at CNN.

Critics, however, have questioned the effectiveness of the arrangement, pointing to controversies surrounding CBS under Skydance ownership. The takeover also attracted scrutiny over foreign investment.

Paramount secured billions of dollars in financial backing from Saudi Arabia, Qatar and the United Arab Emirates to help finance the Warner acquisition.

The US Federal Communications Commission (FCC) approved Paramount’s request for substantial indirect ownership by the Gulf investors.

Paramount had previously disclosed that the investors were expected to indirectly hold nearly 50 per cent of the equity interests in Skydance without voting rights, but sought approval for the possibility of the foreign investors eventually holding up to 100 per cent through future investments.