Warner Bros and Paramount Skydance merge in $110bn Hollywood deal

The $110bn (£82.8bn) merger between Warner Bros Discovery and Paramount Skydance has created a new Hollywood giant, uniting franchises like Harry Potter, Game of Thrones, Yellowstone and NCIS under a single roof. The combined company, named Skydance, carries $80bn in debt from the deal, and executives are targeting $6bn in annual cost savings. Analysts warn that consumers will likely bear the financial burden through higher streaming prices.

Mike Proulx, research director at Forrester, said that streaming services are already raising fees and the debt makes price increases likely. “It’s far-fetched to think it’ll prevent downstream price hikes,” he said. Viewers will gain a broader catalog, but Skydance is shifting toward a bundle of Paramount+ and HBO Max rather than a single app. The merger also brings CNN and CBS News under one corporate roof, raising concerns about editorial independence.

Film output commitments and job losses

A settlement with US states requires Skydance to release a set number of films annually for five years: 30 movies in the first two years and 32 each year after that, totaling 156. Most must be wide releases shown in cinemas, and at least four independent films must be released each year. If the quota is missed, Skydance could be forced to sell a 49% stake in Miramax, the studio co-founded by Harvey Weinstein. But Breanne Gilliam, a corporate lawyer at Maddin Hauser, noted the commitment has an expiration date. “Once those obligations expire, the company will have far more flexibility,” she said.

Actors and writers gathered at Paramount Studios in Los Angeles to oppose the deal, calling it a disaster. Kirsten Vangsness, star of Criminal Minds, told the BBC she was heartbroken. “It’s people that make this city,” she said. “It’s people that make entertainment, it’s the everyday creatives that this industry is built on – this is who it hurts.” A report by CVL Economics for LA County estimated the merger could eliminate roughly 4,500 direct film and TV jobs and $1.26bn in lost wages over three years. The region has already lost about 50,000 film and TV jobs since 2022.

Newsroom independence in question

The settlement creates a news editorial independence board appointed directly by Paramount, but media advocates are skeptical. Seth Stern, chief of advocacy at the Freedom of the Press Foundation, called the board “worthless,” saying it creates the same First Amendment problems it claims to solve. Gilliam added that oversight without authority is just observation. Paramount CEO David Ellison has asked CNN boss Mark Thompson and CBS News editor-in-chief Bari Weiss to remain in their roles, but staff fear significant job losses as the company targets billions in cost cuts.