The merger between Paramount and Warner Bros. Discovery was finalized after months of negotiations and legal challenges, creating a combined entity valued at $110 billion. The deal consolidates film studios, streaming platforms, and news networks under a single corporate structure. David Ellison, founder of Skydance, will serve as chairman and chief executive, while Ynon Kreiz, former chief executive of Mattel, will serve as co-chief executive. The new company will operate under the name Skydance, though it will retain the Paramount and Warner Bros. studio brands, including their trademarks.

The agreement includes commitments to increase domestic film production and maintain editorial independence for CNN and CBS News. Paramount agreed to produce at least 30 films annually for the next two years, increasing to 32 in each of the following three years. A board of journalists will oversee editorial decisions at CNN and CBS News to address concerns about independence. Bari Weiss, editor in chief of CBS News, will continue in her role, while Mark Thompson, chief executive of CNN, will remain as chairman and editor in chief.

The deal faced opposition from a coalition of 12 state attorneys general, led by California’s Rob Bonta, who raised antitrust concerns. The lawsuit was settled after Paramount agreed to additional production and spending requirements. The merger was financed through $80 billion in debt, supported by investments from Oracle co-founder Larry Ellison, RedBird Capital Partners, and sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar.

Financial pressures accompany the merger. Skydance plans to reduce costs by $6 billion over three years. Recent releases, such as the Tom Cruise film "Digger," underperformed at the box office, raising questions about the company’s ability to recoup investments. Fitch Ratings downgraded bonds tied to the merger, citing high leverage and uncertainty about achieving projected synergies.

The consolidation grants Skydance control over major entertainment franchises, including "Harry Potter," "Game of Thrones," and "Mission: Impossible," which could support future revenue streams. The deal also places David Ellison in leadership of CNN, a network frequently criticized by former President Donald Trump. Trump banned CNN from White House grounds in September 2023, though the ban was temporarily lifted following a lawsuit by CNN, Politico, and MSNBC. The network’s coverage continues to draw political scrutiny.

Correction: An earlier version of this article incorrectly attributed a shareholder campaign to David Ellison. He targeted Warner Bros. shareholders, not Paramount shareholders.