Done Deal: Paramount Completes Warner Bros. Takeover, Creating Hollywood Giant

David Ellison’s Paramount on Tuesday completed its takeover of Warner Bros. Discovery, officially combining two legendary film studios, an enormous conglomeration of TV networks, two large streaming services and multiple news organizations into one player that the mogul hopes will let him compete with the likes of Disney and Netflix, to say nothing of Amazon, Apple and Google.

The new company is called Skydance (the same name as the studio Ellison founded 20 years ago), and the executive team, led by Ellison and co-CEO Ynon Kreiz, will have a challenging task ahead of them: Integrating two behemoths, paying down more than $80 billion in debt, and transforming the company into a tech-entertainment hybrid in the process.

“Today is a historic day, not just for Skydance but for our entire industry. 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,” Ellison said in a statement. “Now that ambition is a reality. We’re grateful to everyone who made this possible – the employees, creative talent, and production teams of both companies, who worked tirelessly to get us here and inspire audiences around the world every day, as well as the advisors and partners who guided this transaction to completion. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”

“This is a defining moment for the industry,” added Gerry Cardinale, founder and managing partner of RedBird Capital and a Skydance board director. “By applying our owner-operator model to Paramount and WBD’s unmatched portfolio of iconic franchises, premium original programming, and live sports rights, we can protect that legacy while building for a media landscape that’s undergoing transformational change. David, our Co-CEO Ynon Kreiz, and the rest of our world-class Skydance team have the vision and track record to lead through this change. We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent, and create long-term value for our shareholders.”

First, however, they need to rally the troops. There is a staff meeting set on the Warners lot today, and a meeting with the press later on. In the coming days Ellison and Kreiz are expected to ring the bell at the New York Stock Exchange, where Skydance’s stock will trade.