Paramount takes over Warner Bros in $110bn Hollywood merger
The merger of two of Hollywood's biggest movie studios comes after months of legal disputes and concern over competition.
Paramount has completed its takeover of Warner Bros Discovery in a $110bn merger that is expected to transform Hollywood and the wider media industry.
The deal, which combines two of Los Angeles’ largest studios, follows months of legal battles and broad criticism that the feared cuts and consolidation could damage competition and consumers.
It is set to change streaming for millions, open a new phase for film and television, and leave CNN, one of the biggest news outlets in the US, in an uncertain position.
The merger also brings together a wide range of businesses, including HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network.
Paramount will gain control of major franchises such as Harry Potter, Game of Thrones, The Lord of the Rings and Mission: Impossible.
The newly combined entertainment giant will be renamed Skydance Corporation, the company originally founded by David Ellison before he took over both Paramount and Warner Bros Discover.
Ellison said he wants to preserve the legacy of both studios.
"We never wanted a new corporate identity to diminish, alter or overshadow either one," he said on social media. "Instead, we wanted a name that would give the combined company an identity of its own while allowing Paramount and Warner Bros - and all our extraordinary brands - to remain in the spotlight."
The takeover has been marked by controversy from the outset.
Netflix initially had a deal to buy part of Warner Bros Discovery, but Paramount Skydance triggered a bidding war, prompting the streaming giant to withdraw.
Lawyers in roughly a dozen US states then filed lawsuits, led by California, seeking to block the deal on the grounds that it would suppress competition, increase consumer prices and cause "substantial" harm to movie theaters, cable distributors and "ultimately, audiences nationwide".
US states announced a settlement with Paramount and Ellison last month, clearing the way for the merger.
Under the agreement, Paramount has committed to creating a "news editorial independence board" to "ensure independent, objective, fact-based reporting" at CNN and CBS.
Politics and editorial independence have been a growing concern at CBS since the broadcaster was taken over in 2025 as part of a separate merger between Skydance Media and Paramount.
Ellison, who hosted a dinner for President Donald Trump earlier this year, has tried to reassure critics that editorial independence will be preserved.
Across its 103-year history, Warner Bros has won more than 100 Academy Awards, including dominating last year’s ceremony with a record-tying 11 Oscars for One Battle After Another, Sinners and Weapons.
Paramount’s roots go back to 1912, and it also has more than 100 Oscars for classics ranging from The Godfather to Titanic, although the studio has not matched that same recent run of Hollywood awards.
The studio received no Academy Award nominations for any projects last year. Its most recent win came in 2022 with Top Gun: Maverick.
The agreement with US states is intended to ensure the merged studios produce "real, robust movies" that create economic activity and put people back to work, said California Attorney General Rob Bonta, who led the lawsuit and settlement.
To stop the studio from meeting its annual target with low-budget or automated material, the deal includes strict safeguards against "AI-generated" films.
As part of the arrangement, Paramount must release at least 30 films a year. If it does not meet that annual production quota, it will have to sell its 49% stake in Miramax, the film company founded by disgraced Hollywood mogul Harvey Weinstein and his brother Bob.
Paramount must also ensure that 20% of all film production takes place in the US for the first two years, rising to more than 30% over the following three years.