The acquisition combines two of Hollywood's biggest studios after a string of legal challenges lodged by state attorneys general and unions. The new company, Skydance Corporation, brings together HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network, alongside the streaming services Paramount Plus and HBO Max.
Control of two major US news organisations has drawn particular scrutiny. David Ellison, Skydance's chairman and chief executive, has promised to preserve their editorial independence, but his father, Oracle cofounder Larry Ellison, is a major financial backer of the deal and has previously donated funds to US President Donald Trump and Israel.
Asked about the takeover on Tuesday, Trump welcomed it. "They're terrific people, and it's going to be a great company," he said.
The takeover faced initial opposition from Hollywood workers, politicians and state prosecutors concerned about the mounting concentration of power in an industry already dominated by a handful of companies. Netflix initially reached an agreement to buy part of Warner Bros Discovery, but Paramount then launched a competing bid, prompting a bidding war before Netflix walked away.
A California-led coalition of 12 state attorneys general sued to block the deal, saying it would reduce competition and raise prices. The Writers Guild of America brought a separate challenge. Both cases were settled in September when Paramount agreed to commitments relating to film production, support for displaced workers and protections for the news networks, including the creation of a new editorial independence board.
The settlement did not end opposition to the deal. "This merger will stifle creativity, weaken free speech and cost people their jobs," actor and activist Mark Ruffalo said. Democratic Senator Elizabeth Warren linked the takeover to Trump's efforts to restrict media access. "As Trump tries to ban CNN from the White House, it would be a massive mistake to cave on the Paramount merger," she said, referring to the president's thwarted attempt last month to bar reporters from several news organisations.