Hollywood's big five have officially become the big four. Following a saga that saw Warner Bros nearly acquired by Netflix, only to be outbid by Paramount owners Skydance, the company led by David Ellison, Warner Bros and Paramount are now divisions of Skydance, joining Sony, Disney and Universal as the remaining major-studio players.
Streaming and TV Consolidation
The merger goes beyond film production. HBO Max and Paramount+ will eventually merge into a single entity, though a timeline has not been disclosed. Television channels including HBO, Showtime, CBS, MTV, Comedy Central, Cartoon Network, Nickelodeon, TNT, TBS and CNN are now owned by a single corporation.
The presence of CNN has brought scrutiny, given the post-Skydance changes at CBS News under Bari Weiss, who has overseen a dip in ratings and prestige for 60 Minutes. Weiss isn't expected to add CNN to her purview; current chair Mark Thompson will remain in place for now, and Skydance has insisted that CNN will remain editorially independent.
Legal Concessions and Oversight
An oversight board with Ellison appointees is one of several concessions for a group of state attorneys general dropping their lawsuit to block the merger. Other points include negotiating pay TV rights and channel fees separately, as if the companies haven't merged. The agreement does not address the inevitable layoffs that come with consolidation.
From a consumer perspective, streaming prices will likely jump again, though that's an acceleration of current conditions. Paramount+ is one of the cheaper services, while HBO Max is pricier; a combined version could fetch much more than $25 a month.
Movie Slate and Production Commitments
Skydance has already removed Warner movie studio co-chairs Pam Abdy and Mike De Luca, who noted upon departure that they're leaving the studio with 39 movies. The 2026 release schedule will likely include Clayface, The Cat in the Hat, and Dune 3.
Warner movies in production for 2027 include new installments in the Superman, Ocean's, Minecraft, and Godzilla/Kong series, plus projects from M Night Shyamalan and JJ Abrams. Paramount has new movies in the Sonic the Hedgehog, Paranormal Activity and Quiet Place series, plus a remake of Possession and an adaptation of Tomorrow, and Tomorrow, and Tomorrow.
The attorneys general agreement codifies production numbers for five years: 30 releases each year for two years, then 32 each year for the following three. There are terms about wide releases and independent films, with some questionable definitions. A penalty for failing to meet standards would force the company to divest from Miramax.
Skydance has committed to releasing 156 movies in five years, which should make theatrical exhibitors happy and is a reason some figures like Tom Cruise and James Cameron have championed the merger. The combined 2027 output is on track to hit 30 films; 2028 would need another ten movies or so.
De Luca and Abdy's tenure at Warner was marked by risks and variety, including horror hits like Sinners and Weapons, a best picture Oscar for One Battle After Another, and franchise films with creative imprints. Warner also released flops including The Bride!, Supergirl and Digger. 2026 was a bleak year at the box office, with more than half their titles outgrossed by Coyote vs. Acme.
A greater volume of releases could offset big-money misses and prevent movies from being scrapped as tax write-offs, with a possible penalty of $30m per movie that falls short. Paramount's current tastes for non-blockbusters extend mainly to horror cheapies and "apolitical" inspirational projects.
The merger shows bullishness over theatrical business but is dispiriting as Warner Bros is absorbed by Skydance, which treats the movie business like it can be tentpoled. The nightmare scenario is a 30-movie slate that looks like streaming content without passion projects, plus AI designed to cut costs. Ellison has indicated he wants Skydance to serve as a tech company as much as a media monopoly. The most successful outcome might be failure, which isn't off the table with $80bn of debt. For now, moviegoers can note that the ego and greed driving mergers still includes making movies for theaters.
