The new company that will be created after the acquisition of Warner Bros. Discovery by Paramount will be called Skydance, announced Paramount CEO David Ellison. The deal for over 110 billion dollars is in the final rights and is expected to be closed in the coming days.
The name Skydance comes from the production company founded by Ellison in 2006. It was through Skydance Media that he took the key step towards controlling Paramount before turning his attention to Warner Bros. Discovery.
David Ellison explained to X that the choice of a new corporate name aims to preserve the standalone value of two of the most recognizable brands in the entertainment industry.
“We wanted a name that would give the combined company its own identity, while allowing Paramount and Warner Bros., as well as all of our iconic brands, to remain in the spotlight,“ the media entrepreneur said. He said using Skydance as the parent company name means that neither Paramount nor Warner Bros. will be placed in a subordinate position after the merger.
The new structure will bring together under one corporate roof some of the most valuable assets in the global entertainment industry. The portfolio includes the film studios Paramount Pictures and Warner Bros., the streaming platforms Paramount+ and HBO Max, as well as a large range of television channels, productions and intellectual property.
Warner Bros. Discovery's assets also include HBO, CNN, Discovery and DC Studios, while Paramount controls brands such as CBS, Nickelodeon, MTV and Comedy Central.
The deal also has implications for the future of some of the most popular film franchises in Hollywood. Warner Bros. has franchises such as „Harry Potter“, „Batman“ and other titles from the DC universe, while Paramount is behind series such as „Mission: Impossible“, „Transformers“ and „Top Gun“.
The acquisition of Warner Bros. Discovery is another big step for David Ellison in his attempt to build a media group capable of competing with Netflix, Disney and other global players in the streaming industry.
Ellison is the son of Oracle co-founder Larry Ellison, one of the world's richest technology entrepreneurs. The family has been financially involved in the growth of David Ellison's media business, including in the deals surrounding Paramount.
The battle for Warner Bros. Discovery has taken several twists and turns. Netflix initially reached an agreement to acquire the company's studio and streaming businesses. Paramount, however, continued to pursue a larger deal and ultimately offered more for Warner Bros. Discovery as a whole, including its traditional television assets. This also included networks such as CNN, which significantly increased both the size and strategic importance of the deal.
According to DPA, the value of the acquisition exceeds $110 billion, making it one of the largest deals in the history of the entertainment sector.
After the finalization, Skydance will be the corporate name of the merged group, but Paramount and Warner Bros. will continue to exist as separate brands. This allows the new management to preserve decades of recognition while building a new common corporate structure.
The deal comes at a time when traditional Hollywood studios are under intense pressure to cut costs and at the same time invest billions in content for the global streaming market. The merger under Skydance will give David Ellison a significantly larger catalog of films, series, television channels and global franchises in the competition for viewers.