Paramount announced its takeover of Warner Bros. Discovery in a $ 11 billion deal that is set to reshape Hollywood and the entertainment industry.
The merger of two of the biggest studios in Los Angeles comes after months of legal disputes and criticism over feared cuts and consolidation that could harm competition and consumers.
The combination of the two will bring together five legacy studios in Hollywood, which include Disney, Universal Pictures and Sony Pictures.
It will be rebranded as Skydance Corporation, with David Ellison, former CEO of Mattel, Ynon Kreiz, overseeing Paramount and Warner Bros.’ movie studios, HBO Max, CBS News and CNN.
“Today is a historic day, not just for Skydance but for our entire industry. From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality,” Ellison said in a statement.
Netflix initially had a deal to buy part of Warner Bros. Discovery, but Paramount launched a bidding war, leading to the streaming.
It is expected to expand its international footprint, leveraging combined resources to dominate markets in Europe, Asia and Africa.
Paramount traces its roots back 1912 and also boasts more than 100 Oscars for classics spanning from The Godfather to Titanic. In 2022, it won the award for Best Studio with Top Gun: Maverick.
It is expected that 20% of all film production will take place in the U.S. for the first two years, rising to more than 30% over the following three years.
