Paramount closes on $81 billion takeover of Warner Bros. Discovery, joining two of America’s oldest Hollywood studios

CHICAGO (AP) — Paramount closed its $81 billion purchase of Warner Bros. Discovery, the companies announced Tuesday — forming a new Hollywood giant now called Skydance.The merger brings two of America’s oldest moviemaking studios together — along with HBO Max, titles ranging from “Harry Potter” to “Sinners” and even networks like CNN will soon find themselves under the same roof as Paramount+, CBS and the likes of “Top Gun” and “The Godfather.”“Today is a historic day, not just for Skydance but for our entire industry,” CEO David Ellison, who will lead the company alongside his new co-CEO Ynon Kreiz, said in a statement.THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.CHICAGO (AP) — Skydance-owned Paramount is expected to close its $81 billion takeover of Warner Bros.

Discovery on Tuesday.The new Hollywood giant will have a shorter nametag: “Skydance.” But it marks one of the biggest tie-ups ever in the media and entertainment industry. The merger brings two of America’s oldest moviemaking studios together — along with HBO Max, titles ranging from “Harry Potter” to “Sinners” and even networks like CNN will soon find themselves under the same roof as Paramount+, CBS and the likes of “Top Gun” and “The Godfather."All of them will come under the helm of billionaire David Ellison and his new co-CEO Ynon Kreiz. That further concentrates power in an industry already run by just a handful of major players.

Ellison’s Skydance bought out Paramount for $8 billion just last year, and set its sights on Warner — an even bigger fish — very soon after.What followed erupted into a tumultuous, yearlong fight over Warner’s fate. Including billions of dollars in debt, Paramount’s buyout of Warner amounts to nearly $111 billion today.Here's a look at some of the key moments that got us here.Netflix v. ParamountThe early days of Paramount's quest for Warner turned into a messy bidding war.Months after disclosing it was open to selling parts or even all of its business, Warner initially struck a studio and streaming deal with Netflix back in December.

But Skydance-owned Paramount, which claimed Warner management “never engaged meaningfully” with its previous proposals, soon launched a hostile counterbid aimed at taking over the entire company — including networks like CNN and Discovery.The Hollywood giants spent much of early 2026 in a hea… The combined company, Skydance, will begin trading on the New York Stock Exchange this week. After a legal battle, Paramount has finally acquired Warner Bros.

The new company, Skydance, combines Hollywood studios, streaming services and cable networks.