Paramount-Warner Bros. merger closes under Skydance

Paramount Skydance and Warner Bros. Discovery completed their merger on Tuesday, October 6, creating a combined media company called Skydance with film studios, television networks, news operations and streaming services. Skydance executives say the company will seek $6 billion in cost savings over three years, a plan that includes workforce cuts, while the merged business begins with debt reported at roughly $80 billion or more. David Ellison, Skydance’s chairman and chief executive, led the transaction. The combined company brings together Paramount and Warner Bros. Discovery properties, including the Paramount and Warner Bros. studios, HBO, CNN, CBS News and their streaming services. The deal was valued at $111 billion in reports, though the sources do not specify a common accounting basis for that figure. The merger follows a yearlong effort to combine the businesses and regulatory scrutiny that included objections from state attorneys general and the Writers Guild of America. A settlement and consent decree set out commitments for the new company, including the creation of an editorial-independence board overseeing CNN and CBS News.