Paramount has officially closed its $111 billion acquisition of Warner Bros. Discovery, ending a year-long auction that pulled in Netflix, Comcast and a coalition of state attorneys general.
The combined company now operates under the Skydance name and will generate almost $70 billion in annual revenue, according to details reported by TechCrunch.
The bidding war
Warner Bros. Discovery opened the door to a sale in October 2025 after unsolicited interest from several players. Netflix initially won the board’s support with an $82.7 billion offer for the studios and streaming business, and later sweetened it to $27.75 per share in cash.
Paramount, run by David Ellison, argued its wider bid was superior. It offered around $108 billion, then added a $0.25-per-share quarterly ticking fee and finally raised its offer to $31 per share in February. Netflix declined to match, saying the price no longer made financial sense.
Regulatory and political hurdles
The U.S. Department of Justice approved the transaction in June, but a dozen state attorneys general sued in July to block it, warning about competition, movie theaters and cable distributors. A federal judge briefly paused the deal, then approved it in late September; it closed on October 6.
The deal has also faced political scrutiny. David Ellison’s ownership of CBS News has drawn accusations of favouring the Trump administration, and Warner-owned CNN staff have expressed concern. Larry Ellison, the Oracle chairman and major Trump donor, is providing $45.7 billion in equity.
Regulators and lawmakers argued the merger could raise subscription prices and reduce competition. The new entity will also carry a heavy debt load: the earlier Paramount proposal was seen leaving about $87 billion in debt, and the final agreement includes assumption of WBD’s roughly $33 billion debt plus a $54 billion debt commitment from Bank of America, Merrill Lynch, Citi and Apollo.
What it means for marketers
For media buyers, this is not just an entertainment story. One owner now controls major studios, HBO, CNN, HGTV and the streaming services HBO Max, Paramount+ and Discovery+, which are expected to be combined eventually.
- Watch pricing and bundling: consolidated streaming could shift subscription and ad-supported tiers.
- Revisit upfront commitments: a bigger seller may change how inventory is packaged across linear and streaming.
- Keep an eye on content jobs: Ellison has warned of significant job reductions, which could affect programming pipelines.
- Factor in regulatory mood: the deal’s high-profile fight signals more oversight of media consolidation.
The outlook
The new Skydance will need to prove the $111 billion bet makes financial sense while managing debt, possible layoffs and the merger of three streaming services. For marketers, the practical takeaway is to stay flexible as bundles, pricing and ad products are reworked.
Source: TechCrunch
