Paramount completes Warner Bros. Discovery takeover, bringing HBO Max under Skydance

Warner initially favored a proposal from Netflix, but Paramount pursued the entire company and raised its offer to $31 per share. Netflix withdrew, and Warner and Paramount signed a merger agreement in late February 2026. Skydance plans to combine HBO Max and Paramount+ over time, according to coverage of the merger; the two services are now under common ownership.

What will Skydance control?

The deal brings two major studios, their libraries, two subscription-streaming services and the news outlets CNN and CBS under one corporate owner. The company’s holdings span film, television, streaming and news, as well as a long list of recognizable entertainment properties.

Ellison and Kreiz have argued that a larger company will be better positioned to compete with the industry’s biggest players. For subscribers, the immediate change is shared ownership of HBO Max and Paramount+. The planned combination of the services could change how their programming is packaged and delivered.

What commitments does the settlement impose?

The settlement with 12 states requires at least 30 theatrical film releases in each of its first two commitment years, followed by at least 32 a year in years three through five. It also requires at least $1.5 billion in additional U.S. film-production spending and $47.5 million for worker training and career development over five years, California Attorney General Rob Bonta’s office said.

For five years, Skydance cannot sell or close either the Paramount or Warner Bros. studio lots in Los Angeles. The settlement also requires separate negotiations over cable packages and establishes an editorial independence board for CNN and CBS.

The release, production and training requirements give creators and production workers concrete commitments to track. But they sit alongside a much larger savings target: Paramount is aiming to cut costs by $6 billion, and its co-CEOs told employees that integrating the companies would bring difficult workforce decisions, CBS News reported.

Why did the merger face opposition?

Attorneys general from 12 states sued, arguing that the merger would reduce competition and choice for moviegoers and cable customers. The states later settled with Paramount. The Writers Guild of America also filed suit, while thousands of actors, writers, directors and other entertainment professionals signed an open letter warning that consolidation could mean fewer jobs and less choice for audiences, AP reported.

Five consumers asked the Supreme Court to block the deal while their lawsuit proceeded, arguing that common ownership could concentrate decisions about prices, programming, jobs and investment. Justice Elena Kagan denied their emergency application Monday, Courthouse News Service reported.

The settlement’s editorial board is intended to help CNN and CBS maintain independence. Critics questioned whether it would be effective given Ellison’s oversight of appointments, AP reported. The state attorneys general’s competition concerns remain allegations, not a court finding that the merger violated antitrust law.

Skydance’s leaders now have to integrate the businesses while meeting the settlement’s production, training and studio-lot commitments. Their $6 billion savings target and acknowledgment of difficult workforce decisions make the consequences for workers a central measure of the takeover.