Paramount Closes Warner Bros. Discovery Deal, Creates Skydance — SkimNews
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- Paramount closed its deal to acquire Warner Bros. Discovery on Tuesday, with the combined company rebranded as Skydance and placed under the control of tech scion David Ellison
- Ellison wrested the company from rival bidder Netflix after a monthslong tug of war that saw him submit nine offers
- The new Skydance sits alongside streaming titans Netflix and YouTube in the competitive landscape, trailing Disney and Amazon
- Ellison and co-CEO Ynon Kreiz sent a 1,705-word 'Day 1' memo to employees that, paired with a global town hall at 1 p.m., signaled a rapid takeover
- Ellison was criticized for courting President Trump during the DOJ's review, including an April Washington dinner 'honoring the Trump White House'
- The merged company is 'saddled with debt,' and the leaders' memo hinted at cost cuts
Why it matters: The merger creates a streaming-and-studios giant whose leaders flagged cost cuts in their Day 1 memo, a signal to Hollywood labor and suppliers that the new Skydance will pursue aggressive synergies. Netflix lost out after a nine-offer bidding fight, but enters as a direct competitor. Ellison's pre-merger courtship of Trump adds a political dimension that other outlets frame as a regulatory concession.
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