Paramount Skydance announced its $110 billion deal with Warner Bros. on Tuesday. Discovery completed its acquisition, merging the film studios behind “The Godfather” and “Harry Potter” into a media giant rebranded as Skydance.
The merger also brings together newscasts CBS News and CNN, major cable networks including Comedy Central, Nickelodeon, TBS and TNT, and streaming services Paramount+ and HBO Max.
David Ellison, who oversaw the merger as CEO of Paramount Skydance, will lead the new company alongside co-CEO Ynon Kreiz, who was previously CEO of toy company Mattel.
In an email to employees, Ellison and Kreiz said the merger would allow the company to create “a stronger competitor with the scale to rival the largest players in our industry.”
“Today is a historic day not just for Skydance, but for our entire industry,” Ellison said in a separate statement from Skydance.
As part of the deal, the company signed a contract with Warner Bros. It said its shareholders will receive the cash equivalent of approximately $31 per share.
The deal came about after Paramount reached an agreement. July case A coalition of 12 state attorneys general and a separate lawsuit from the Writers Guild of America (WGA). Both filed a lawsuit to block the practice on antitrust grounds.
Under compromise agreementParamount pledged to produce 30 films in each of the first two years after the merger, and would be affiliated with either Paramount or Warner Bros. in Los Angeles for at least five years. He was prohibited from selling or closing his studios.
Paramount also agreed to establish an editorial board to “help CNN and CBS maintain their editorial independence,” according to California Attorney General Rob Bonta’s office. The WGA agreed to settle its lawsuit after Paramount reached a settlement with the states.
Ellison said the company is targeting $6 billion in cost savings, but some in the media industry are concerned the move could lead to job losses.
“The integration of the two companies will bring change, including difficult decisions affecting our workforce,” Ellison and Kreiz said in an email to Skydance employees.