Paramount completed its $111bn acquisition of Warner Bros Discovery on Tuesday, consolidating some of the world’s most recognizable studios and news outlets after a bidding war with Netflix and months of legal turmoil.
New leadership and structure
The new company, now called Skydance, will have David Ellison, the son of a billionaire tech mogul, at its helm, with the former CEO of Mattel, Ynon Kreiz, as co-executive. They will oversee Paramount and Warner Bros’ movie studios, HBO Max, CBS News and CNN.
“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality.”
Merger approval and legal challenges
The consolidation of Paramount and Warner Bros combines two of the last five legacy studios in Hollywood, which includes Disney, Universal Pictures and Sony Pictures. Though the merger was approved in June, California, New York and 10 other states sued Paramount over concerns that the move would “extinguish” competition and lead to fewer movie theaters in theaters and at home.
As part of the settlement agreement reached last month, Skydance is required to release a minimum of 30 films each year and more than 180 television shows. CBS News and CNN will also be required to maintain independent editorial boards.
Compliance and oversight
A trustee will monitor Skydance’s compliance with the terms of the settlement. Rob Bonta, the California attorney general, said he would be prepared to go to court if the company ever fails to comply.
“This settlement is not a vote of support for this merger; it’s not a blessing of the broader merger,” he said on 21 September, when the settlement was announced. “Broadly speaking, we believe further consolidation in markets that are essential to American economic life doesn’t serve the American economy, consumers or competition well.”
Concerns over editorial independence
The merger has also raised concerns over Ellison’s influence over CNN after his overhaul of CBS News. When Ellison’s Skydance Corporation acquired Paramount last year, he appointed Bari Weiss, a former New York Times opinion writer who launched an “anti-woke” media outlet, as the head of CBS News, despite her lack of television experience. Since then, the television network has faced accusations of bias toward the Trump administration, though Ellison has defended his stewardship of both CBS and now, CNN.
On Monday, CNN’s CEO, Mark Thompson, announced that he would remain his role under its new parent company, saying that he has spoken with Ellison and Skydance leadership and that he has “real confidence that they both understand and will fully support the principle and practice of the kind of independent news that CNN has always stood for”.
