Paramount-Warner merger closes, putting CNN and CBS News under Skydance

Paramount Skydance completed its $110 billion merger with Warner Bros. Discovery on Tuesday, creating a company called Skydance that brings CNN and CBS News under one owner alongside major film studios and streaming services.

The change was visible immediately. Warner Bros. employees logging on to their laptops saw a new SKYDANCE logo, NBC News reported. The branding also appeared at the Warner Bros. water tower in Burbank, California, and at the company’s New York office. Skydance began trading on Wall Street under the ticker SKYD; its shares closed Tuesday down 2.5% at $9.53.

David Ellison, 43, remains chairman and chief executive officer, while former Mattel chief executive Ynon Kreiz joins him as co-CEO. The combined company includes the Paramount and Warner Bros. film studios, Paramount+ and HBO Max, and the two news organizations. Ellison’s father, Oracle chief Larry Ellison, is a close ally of President Donald Trump and is personally backing the deal with tens of billions of dollars, according to NBC News.

“We’re proud to write this next chapter with you,” Ellison and Kreiz told employees in a memo titled “Day 1,” shared with NBC News. Calling the transaction “the beginning of a new era in entertainment,” they wrote: “This isn’t a merger of convenience.”

The deal faced opposition from Hollywood actors, writers and producers who warned in an open letter that further consolidation would “threaten the sustainability of the entire creative community.” State attorneys general also challenged it, citing competition and concerns about CNN’s journalistic independence. After federal, European and other international approvals, Paramount Skydance reached a settlement with the states on Sept. 21.

Under that agreement, the company must release 30 films a year for the first two years and 32 annually for the following three years, or pay a fee for missing those targets, NBC News reported. It must also establish independent editorial oversight boards for CNN and CBS News. Al Jazeera reported that Skydance has 180 days to appoint a five-journalist board selected by Ellison, with no more than two members affiliated with the same political party. The company is not required to disclose the board’s findings publicly.

Seth Stern of the Freedom of the Press Foundation questioned whether the oversight arrangement would protect news coverage. “The newsroom can be totally overhauled in 180 days,” he told Al Jazeera.

Mark Thompson will remain CNN Worldwide’s chairman and editor-in-chief, and Bari Weiss will continue as CBS News editor-in-chief. Thompson told staff that details of how CNN will operate within the new company “have yet to be finalized,” Al Jazeera reported.

Other leadership changes are already underway. HBO’s Casey Bloys will lead the combined streaming business, while Paramount Pictures co-chairs Dana Goldberg and Josh Greenstein will head the expanded film division. Warner film chiefs Mike de Luca and Pam Abdy have left, as has Paramount streaming chief Cindy Holland, NBC News reported.

Ellison and Kreiz acknowledged that integration would bring “difficult decisions that affect our workforce.” On Monday, the Supreme Court denied an emergency request from individuals seeking to intervene in the merger. Trump said Tuesday he was “happy” the deal had closed, calling it a “great merger.”