Paramount and Warner Bros. Discovery are expected to complete their roughly $110 billion merger Tuesday, creating a combined media company named Skydance after a federal judge cleared the final legal obstacle.
U.S. District Judge Araceli Martinez-Olguin last Wednesday entered a consent decree agreed to by Paramount, the states and the Writers Guild of America. The settlement resolves an antitrust lawsuit brought by a coalition of 12 states. The judge also declined a request from Paramount subscribers for a temporary restraining order.
Under the settlement, Paramount agreed to a five-year commitment to increase film production, a ban on bundling its cable channels with those owned by Warner Bros. Discovery and a $47.5 million fund for workers displaced by the merger. The decree also requires 45-day theatrical windows for qualifying films. Missing the annual film quota carries a $30 million per-film penalty, and the divestiture of Paramount’s stake in Miramax is possible if a shortfall goes unaddressed.
Paramount Skydance Chairman and Chief Executive Officer David Ellison announced the new name Friday in a post on X. Skydance is the name of the production company Ellison founded, which merged with Paramount in 2025.
“Together, we are Skydance: a creative-first home for bold, quality storytelling,” Ellison said.
The combined company’s legal name will become Skydance Corporation on closing day, according to a regulatory filing. Ellison said the Paramount and Warner Bros. studios and other brands will keep their own identities. The company will span CBS, CNN, Paramount+, HBO Max and the studios behind franchises including “Mission: Impossible” and “Harry Potter.”
The combined company is expected to carry roughly $80 billion in debt and is targeting $6 billion in cost savings.
Paramount also announced a leadership change last Wednesday. Former Mattel Chief Executive Officer Ynon Kreiz will join as co-chief executive officer, overseeing day-to-day operations and integration. Paramount streaming chief Cindy Holland announced her exit, and HBO’s Casey Bloys is expected to take over the streaming business once the deal closes.
Paramount and Warner Bros. Discovery announced the definitive agreement in February, with Paramount paying $31 per share in cash. Netflix had earlier won the rights to acquire Warner Bros. Discovery’s film studio before Paramount submitted a larger offer.
The deal is expected to close Tuesday.
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