The merger between Paramount and Warner has officially closed, resulting in a new entity named Skydance. The combined company integrates major assets, including the Paramount+ and HBO Max streaming platforms, the CBS and CNN networks, and various live sports properties such as CBS Sports and TNT Sports.
The transaction, valued at $111 billion, faced significant legal hurdles. A lawsuit from California and 11 other states, which alleged the deal would harm competition, was settled in September. US District Judge Araceli Martinez-Olguin approved the settlement, noting it avoids the risks and costs of a full trial.
To address antitrust concerns, the settlement mandates specific investment levels for domestic film releases and requires separate negotiations for cable channel distribution. Additionally, Skydance must establish an Editorial Independence Board for CBS News and CNN, though members will be appointed by the company.
Financial details reveal that Skydance will carry approximately $80 billion in debt. The company is backed by sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar, which hold non-voting shares. The Ellison family and RedBird Capital Partners retain full control through 100 percent of the voting shares.
The US Department of Justice approved the merger in June, despite internal staff opposition. Furthermore, the FCC permitted the financing of the deal through the sale of equity stakes to the aforementioned foreign sovereign wealth funds. CNN CEO Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their current leadership roles.
