NewzThe deal, which followed a tumultuous, roughly yearlong fight, further concentrates power in an industry already run by just a handful of major players. The combined company brings together Paramount Pictures and Warner Bros Pictures, the CBS News and CNN networks, and the HBO and CBS television brands under the control of David Ellison. Skydance-owned Paramount finalizes its acquisition of Warner Bros.
Discovery for $81 billion, creating a new Hollywood powerhouse. The merger unites two historic studios and centralizes industry influence under Skydance. CHICAGO (AP) — It’s official: Skydance-owned Paramount closed its $81 billion takeover of Warner Bros.
Discovery on Tuesday, ushering in a new Hollywood giant.The merger brings two of America’s oldest moviemaking studios together under a new name: Skydance. “We couldn’t be more excited to get to work.”Including billions of dollars in debt, the Warner acquisition amounts to nearly $111 billion.Ellison’s Skydance bought Paramount for $8 billion last year before setting its sights on Warner. What followed was one of the biggest tie-ups ever in the media and entertainment industry.Netflix gets into a bidding war with Paramount for WarnerThe early days of Paramount's quest for Warner turned into a messy bidding war.Months after disclosing it was open to selling all or part of its business, Warner initially struck a studio and streaming deal with Netflix in December.But Paramount said it also had made offers that Warner management “never engaged meaningfully” with.
It soon launched a hostile counterbid.The Hollywood giants spent much of early 2026 in a heated back-and-forth over who had a stronger offer, with Warner leadership repeatedly backing Netflix as its preferred suitor. But Netflix bowed out after Paramount eventually upped its offer to buy all of Warner for $31 per share.Warner and Paramount inked a mutual merger agreement in late February.Hollywood stars made their thoughts knownHollywood was closely watching the fight over Warner's future. From awards shows to online petitions, A-list celebrities and other creatives made their voices known.In April, thousands of movie stars, writers, directors and other professionals announced their “unequivocal opposition” to the Paramount-Warner merger.
An open letter — which was signed by long-outspoken critics of the deal like Jane Fonda and Mark Ruffalo, as well as Hollywood heavyweights from D… Paramount completed its acquisition of Warner Bros Discover on Tuesday, after a bidding war against Netflix. The deal closed following federal approval of a settlement between Paramount and 12 US states that tried to block the transaction on antitrust grounds.
Opponents in the movie industry warned of job cuts, while media groups said Warner-owned CNN's independence could be compromised.
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