Paramount completes acquisition of Warner Bros. Discovery, reports say
In short
Paramount has completed its acquisition of Warner Bros. Discovery, according to reports cited by Chinese business outlets CLS and Yicai. The deal followed a months-long contest in which Ellison submitted nine bids and beat rival Netflix, and a state attorneys general antitrust suit that ended in a settlement. The new company faces an $82 billion debt load and a $6 billion cost-cutting target over three years, with thousands of job losses considered likely.
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Paramount has completed its acquisition of Warner Bros. Discovery, according to reports cited by the Chinese business outlets CLS and Yicai on the evening of October 6. Neither outlet gave deal terms or a purchase price. [ 1 , 2 ]
CnBeta reported that Ellison said in a statement on Tuesday: “Today is a historic day, not just for Skydance but for our entire industry.” He added that the company was “eager to get to work”. The result followed months of contest in which he submitted nine acquisition bids and beat rival Netflix, the outlet said. [ 3 ]
A coalition of state attorneys general sued on antitrust grounds to try to stop the deal, cnBeta reported, but the transaction went ahead after the attorneys general reached a settlement with the company. The settlement secured several commitments, including an editorial independence committee to protect CNN's reporting independence, and Ellison pledged an additional $1.5 billion for film production over the next five years, according to the outlet. [ 3 ]
Hundreds of Hollywood industry figures said the transaction would sharply increase corporate power concentration, lead to layoffs and further stall Hollywood's development, cnBeta reported. Skydance argued the merger was a necessary measure to counter large technology companies, the outlet said. [ 3 ]
CnBeta said the new company carries $82 billion in debt, heavy pressure for a traditional media company, and that 43-year-old Ellison, who until last year had never run a listed media company, must convince Wall Street it can handle the challenges and repay it. The outlet described an industry in deep change: cable television, once a core profit source, remains profitable but is in sustained decline, streaming cannot yet replace the lost profit, and technology companies such as Amazon and Apple keep pushing up content costs. [ 3 ]
Ellison must also deliver $6 billion in cost cuts over three years, cnBeta reported, with thousands of job losses considered likely and some expected from overlapping business units. CNN and CBS News are potential targets for streamlining, and some administrative positions at Paramount and Warner Bros may also be cut. Warner Bros. Discovery CEO David Zaslav and Paramount streaming head Cindy Holland chose to leave after completion. Ellison retained Mark Thompson as CNN chairman; Thompson told staff in a memo on Monday that he had spoken with Ellison and was confident Skydance management would support CNN's independent journalism. CnBeta also noted unease among some CNN staff over Ellison's personal ties to President Trump, including a dinner toasting the Trump administration in the spring and accompanying Trump at a UFC event at the White House. [ 3 ]
Why it matters
The completion creates a large combined Hollywood media company at a time when the documents describe cable television in sustained decline and streaming unable to replace lost profit. According to cnBeta, the deal drew opposition from hundreds of Hollywood industry figures over concentration of corporate power and expected layoffs, while Skydance argued the merger was needed to counter large technology companies.
Key facts
- Paramount completed its acquisition of Warner Bros. Discovery, as reported by CLS and Yicai. [ 1 , 2 ]
- Ellison beat rival Netflix in a contest lasting months, submitting nine acquisition bids, according to cnBeta. [ 3 ]
- A coalition of state attorneys general sued on antitrust grounds to block the deal, and later settled with the company, cnBeta reported. [ 3 ]
- The settlement included commitments to set up an editorial independence committee to protect CNN's reporting independence and an Ellison pledge of an additional $1.5 billion for film production over five years, per cnBeta. [ 3 ]
- Hundreds of Hollywood industry figures said the deal would sharply increase corporate power concentration and lead to layoffs, cnBeta reported. [ 3 ]
- The new company carries $82 billion in debt and a target of $6 billion in cost cuts over three years, cnBeta reported. [ 3 ]
- Warner Bros. Discovery CEO David Zaslav and Paramount streaming head Cindy Holland are leaving after the transaction, according to cnBeta. [ 3 ]
- Ellison pledged at least 30 theatrical releases a year, rising to 32 within two years, cnBeta reported. [ 3 ]
Confirmed by several sources
Still unclear
- Whether Paramount or Warner Bros. Discovery has officially announced the completion. Documents 1 and 2 attribute the completion to reports (“据报道”) and cite no company statement; document 3 does not carry a company confirmation either.
- The financial terms and the closing date of the transaction. None of the documents states a purchase price or a completion date.
- How many jobs will be cut and where. Document 3 says thousands of job losses are likely and names CNN, CBS News and administrative roles as potential areas, but gives no confirmed figure or decision.
What local media are saying
Timeline, local time
- CLS reports that Paramount has completed its acquisition of Warner Bros. Discovery, citing reports. [ 1 ]
- Yicai reports that Paramount has completed its acquisition of Warner Bros. Discovery. [ 2 ]
- CnBeta publishes a detailed account, including Ellison's statement that it is “a historic day” and that the team is “eager to get to work”. [ 3 ]