By: Magdalene Agyeiwaa Sarpong/ Getty Images
Paramount Skydance has finalised its $110 billion acquisition of Warner Bros Discovery, creating a major new force in the global entertainment industry.
The transaction combines two major Hollywood studios and is expected to significantly reshape television, cinema and streaming services.
The agreement follows months of courtroom challenges and concerns that increased consolidation could reduce competition and affect consumers.
The newly formed company, which will operate as Skydance Corporation, brings together major brands including HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network.
It also gives Paramount control of prominent franchises such as Harry Potter, Game of Thrones, The Lord of the Rings and Mission: Impossible.
Skydance chairman and chief executive David Ellison described the completion as a historic moment, saying the merger would create a stronger competitor with greater resources and global reach.
The transaction faced significant opposition during negotiations.
Netflix had initially reached an agreement to acquire part of Warner Bros Discovery before Paramount Skydance entered the bidding process, eventually prompting Netflix to withdraw.
Legal action was subsequently brought by several US states, with California leading the challenge.
Authorities argued that the combination could weaken market competition, increase costs for audiences and negatively affect cinemas and cable providers.
A settlement reached between the states, Paramount and Ellison last month removed the final major obstacle to the transaction.
Under the agreement, Paramount will establish a news editorial independence board designed to promote impartial and fact-based journalism at CNN and CBS.
The issue has attracted particular attention following concerns about political influence and newsroom independence since Skydance’s earlier takeover of Paramount.
The combined company will inherit Warner Bros’ century-long Hollywood legacy, including more than 100 Academy Awards.
Paramount also has a history stretching back to 1912 and has collected more than 100 Oscars, with Top Gun: Maverick providing its most recent victory in 2022.
The settlement also contains measures aimed at protecting employment and traditional film production.
Paramount will be required to release a minimum of 30 movies annually and maintain safeguards against using artificial intelligence to meet production targets with low-cost automated projects.
Failure to satisfy the yearly requirement could result in Paramount being forced to dispose of its 49% interest in Miramax.
The agreement further requires at least one-fifth of the company’s movie production to take place within the United States during the first two years, increasing to above 30% over the subsequent three-year period.
The merger marks a major transformation for Hollywood, bringing some of the industry’s most recognisable entertainment, news and television properties under one corporate umbrella.