Two of Hollywood’s biggest studios just became one giant company. Paramount has officially completed its $110 billion takeover of Warner Bros. Discovery, and the combined company now has a brand new name: Skydance. Here is the full story in simple words.
What Happened Today?
On Tuesday, October 6, 2026, Paramount Skydance closed its deal to buy Warner Bros. Discovery. The deal is worth $110 billion, and some reports put the total value at $111 billion once WBD’s debt is included. This is one of the biggest media mergers in history.
The new combined company is now called Skydance. Its shares moved from the Nasdaq stock exchange to the New York Stock Exchange, where they now trade under the ticker symbol “SKYD.”
What Brands Are Now Under One Roof?
This merger brings together some of the biggest names in entertainment. The new company now owns:
- Film studios behind Harry Potter, Mission: Impossible, DC Studios, and Sinners
- TV networks including CBS, CNN, TNT, TBS, Comedy Central, and MTV
- Two major streaming services: Paramount+ and HBO Max
In short, two of Hollywood’s five largest film studios are now one company.
How Much Was Paid?
Under the deal, Paramount paid $31.00 per share in cash for every outstanding share of Warner Bros. Discovery. The merger was funded with $47 billion in new investment, led by Larry Ellison, RedBird Capital Partners, LionTree, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.
A Long and Bumpy Road to This Deal
This merger almost didn’t happen the way it did. Here’s a quick timeline of how we got here:
| Date | What Happened |
|---|---|
| Early 2026 | Warner Bros. Discovery initially favored a rival offer from Netflix over Paramount’s bid |
| Late February 2026 | Netflix pulls out of the bidding war. Paramount and WBD sign a merger agreement |
| June 12, 2026 | The US Department of Justice approves the merger |
| July 13, 2026 | A group of state attorneys general, led by California’s Rob Bonta, sues to block the deal over antitrust concerns |
| July 24, 2026 | Paramount agrees to delay closing the deal, possibly until June 2027, due to a court order |
| September 2026 | Paramount and the state attorneys general settle the lawsuit, clearing the way for the deal |
| October 6, 2026 | The merger officially closes, creating Skydance |
Why Did a Lawsuit Try to Stop It?
A group of state attorneys general sued to block the merger, arguing that combining two such large companies could lead to higher prices and lower-quality content for consumers. Paramount eventually settled with the states in September, allowing the deal to move forward just before an extra financial penalty, called a “ticking fee,” was set to kick in.
What Is the “Ticking Fee” Everyone Is Talking About?
As part of the deal terms, Paramount had agreed to pay Warner Bros. Discovery roughly $7 million per day as a penalty if the merger was delayed past a certain point. This fee started adding up from October 1, which is part of why Paramount was eager to get the deal closed quickly once the lawsuit was settled.
What Paramount’s New CEO Said
David Ellison, the 43-year-old CEO of Skydance, called the deal’s closing “a historic day, not just for Skydance but for our entire industry.” He had been pushing for this acquisition since his company, Skydance Media, took over Paramount Global back in 2025.
What Was Promised Alongside the Deal
As part of the agreement, the new company has committed to:
- Producing a minimum of 30 theatrical films every year
- Investing millions of dollars over the next five years into a fund to support workers whose jobs are affected by the merger
- Setting up new editorial oversight for CNN and CBS News
Why This Merger Is a Big Deal
This deal brings together two of America’s oldest movie studios and puts even more power into the hands of a small number of major entertainment companies. With HBO Max and Paramount+ now under one roof, and CNN sitting alongside CBS, the new Skydance becomes a true heavyweight across film, television, news, and streaming all at once.
Frequently Asked Questions
What is the new company called?
The combined company is called Skydance, and its shares trade on the New York Stock Exchange under the ticker “SKYD.”
How much did Paramount pay for Warner Bros. Discovery?
The deal is valued at $110 billion, or $111 billion including WBD’s debt, with Paramount paying $31.00 per share in cash.
When did the merger officially close?
On Tuesday, October 6, 2026.
Which brands are now part of the same company?
HBO Max, Paramount+, CNN, CBS, TNT, TBS, Comedy Central, MTV, and the studios behind Harry Potter, Mission: Impossible, and DC Studios.
Why was there a lawsuit against the merger?
A group of state attorneys general argued the deal could lead to higher prices and lower-quality content. The lawsuit was settled in September 2026, allowing the merger to proceed.
This merger reshapes Hollywood overnight, bringing legendary studios, major TV networks, and two streaming giants under a single company called Skydance. Expect more details in the coming weeks on how HBO Max and Paramount+ might eventually work together.
