Paramount Skydance’s acquisition of Warner Bros Discovery for $110 billion was completed on Oct. 6 following months of litigation and concerns about layoffs, competition and consumer pricing. It brings HBO, CBS, CNN, DC Studios and many more brands under one owner. Here is what changes for viewers and moviegoers.
The deal is done
After Supreme Court Justice Elena Kagan rejected a last-ditch effort to stop the deal on Tuesday, the merger closed. Shares of the new company started trading on the New York Stock Exchange under the ticker SKYD. Previously, settlements with 12 states and the Writers Guild resolved most of the remaining legal issues.
Who is in charge
David Ellison, who led Paramount Skydance, is chairman and CEO of the new company. He will co-lead it with co-CEO Ynon Kreiz, who was the CEO of Mattel toy company. Both state that the combination would make the company one of the biggest in the entertainment industry.
Brands under one roof
Now Skydance has two big film studios: Paramount Pictures and Warner Bros and also HBO, CBS, CNN, DC Studios, Nickelodeon, Comedy Central, Showtime, TNT, TBS and Food Network. The parent company of the franchise that includes Harry Potter, Mission: Impossible, Star Trek and Game of Thrones are all in the same hands.
One streaming app eventually
Skydance has confirmed that HBO Max and Paramount+ will unify into a single service over time. No name, price or launch date has been announced, so subscribers will keep using both apps for now. Together, the two services have around 200 million subscribers.
What about prices
The company has not said what the combined service will cost. An ad-free HBO Max plan currently costs $18.49 a month. The merger does not automatically mean higher prices, but the new company carries roughly $80 billion in net debt, which analysts say could add pricing pressure.
Movies and theaters
Under its settlement with the states, Skydance agreed to release at least 30 films a year and to increase film production in the U.S. over the next five years. It is also barred from selling or closing either the Paramount or Warner Bros film studio.
CNN and CBS News
CNN and CBS News will remain separate news organizations for now. As part of the state settlement, the company agreed to create a News Editorial Independence Board to oversee editorial standards at both outlets, a key concern raised by critics during the approval process.
Jobs and cost cuts
Paramount has said the merger will produce at least $6 billion in cost savings, and employees have been warned to expect layoffs. The settlement requires the company to contribute millions of dollars to a fund supporting entertainment workers who lose their jobs because of the merger.
