Paramount Skydance to close Warner Bros. Discovery takeover after year-long fight

The combined company, described as one of the largest media conglomerates in history, will be newly named Skydance and trade under the ticker symbol SKYD. It brings together two of Hollywood's most storied film studios and will control nearly one-third of basic cable programming, according to CNBC.

The deal caps a little over a year of effort by Paramount Skydance to buy Warner Bros. Discovery. Key events along the way:

June 9, 2025: Warner Bros. Discovery announced a plan to split into two public companies: a streaming and studios company and a global networks company. The move came as media companies grapple with how to maintain profitability in the face of declining linear viewership and a broad shift to streaming.
Aug. 7, 2025: Paramount closed its long-awaited merger with Skydance, the company founded by Ellison, a tech executive and the son of Oracle co-founder Larry Ellison. Within days, newly installed CEO Ellison bought the multiyear rights to TKO Group's UFC in a $7.7 billion deal. Within a month, he acquired the rights to produce a film based on the Call of Duty video game franchise and signed a multiyear deal with "Stranger Things" creators the Duffer Brothers.
Sept. 11, 2025: CNBC reported that Paramount was preparing a bid for Warner Bros. Discovery.

The series of investments fits into Ellison's plan to "define the next era of entertainment," a strategy he outlined in a letter to shareholders. The final stretch of the acquisition involved a series of regulatory approvals, an antitrust challenge by state attorneys general and a timely settlement.

Analysis

Why This Matters

The combination creates one of the largest media conglomerates in history, joining two of Hollywood's most storied film studios under one owner.
The new company will control nearly one-third of basic cable programming at a time when linear viewership is declining and audiences are shifting to streaming.
The deal tests whether aggressive content investment, from UFC rights to video game adaptations, can sustain a traditional studio in the streaming era.

Background

The acquisition caps a wave of restructuring across the media industry. Warner Bros. Discovery had planned to separate its streaming and studios business from its cable networks as companies struggled to maintain profitability amid cord-cutting and the shift to streaming. Paramount itself only merged with Skydance in August 2025, putting Ellison, the son of Oracle co-founder Larry Ellison, in charge before he set his sights on Warner Bros. Discovery.

Key Perspectives

David Ellison and Paramount Skydance: Ellison has framed the expansion as defining the next era of entertainment, backing the strategy with major content commitments including UFC broadcast rights, a Call of Duty film and a multiyear deal with the Duffer Brothers.

Regulators and state attorneys general: The deal required a series of regulatory approvals and faced an antitrust challenge from state attorneys general, which was resolved through a settlement. That challenge reflected concern about concentration of ownership in the media sector.

Critics and skeptics: With the combined company controlling a large share of basic cable programming, questions remain about the long-term value of those assets as audiences continue to abandon linear television.

What to Watch

The closing of the deal on Tuesday and the debut of Skydance under the SKYD ticker.
How the combined company integrates Warner Bros. Discovery's studios and streaming platform with Paramount's operations.
Whether the previously announced plan to separate WBD's streaming and studios business from its cable networks proceeds under Skydance ownership.

Analysis

Why This Matters

Background

Key Perspectives

What to Watch

Sources