The Skydance Corp merger announced on Oct. 6 marks a historic moment in entertainment. David Ellison will lead the newly formed Skydance Corp. with former Mattel chief Ynon Kreiz as co-CEO as the $111 billion Paramount-Warner Bros. Discovery merger closes Oct. 6, according to the Hollywood Reporter. Warner Bros. Discovery CEO David Zaslav bid farewell to company employees in a video Monday, the eve of the deal’s scheduled Oct. 6 close, according to Variety.
The merger brings together two of Hollywood’s last five legacy studios, combining HBO Max, CNN and the Harry Potter library with CBS, the Top Gun franchise and Paramount+, according to the Associated Press. A federal judge approved a settlement Wednesday with 12 states that had sued to block the combination, clearing the final major hurdle before the Oct. 6 close.
The Leadership Details
Ellison, Paramount’s chairman and CEO, is staying in the top spot of the combined company, with Kreiz joining him as co-CEO. The corporate parent will trade under the Skydance name, a brand Ellison founded 20 years ago, while Paramount and Warner Bros. continue operating as sub-brands, the outlet reported.
“We wanted a name that would give the combined company an identity of its own while allowing Paramount and Warner Bros. and all our extraordinary brands to remain in the spotlight,” Ellison wrote on X, per the Hollywood Reporter.
On the streaming side, Casey Bloys, chairman and CEO of HBO and HBO Max Content, is positioned to lead the combined HBO Max and Paramount+ service after Paramount streaming boss Cindy Holland announced her exit, according to Deadline. Holland told staff that Ellison was “optimizing for HBO stability” in making that call, and said she supported the decision.
“Cindy is one of the most exceptional executives in our industry, a force of nature whose impact on Paramount over the past year has been significant,” Ellison said in a statement to Deadline, crediting Holland with Paramount+’s growth and Pluto TV’s transformation.
What It Means For Fans And Customers
For viewers, the merger consolidates HBO Max and Paramount+ under Bloys, setting up questions about how the two streamers will coexist or combine going forward. The company’s SEC filing confirmed the new corporate entity will trade under the ticker SKYD and move from the Nasdaq to the New York Stock Exchange, according to the Hollywood Reporter.
The settlement carrying conditions for moviegoers requires Paramount to release 30 films in theaters annually for two years, then 32 films a year for the following three years, according to the AP. Missing those targets would force the company to divest Miramax Studios and pay $30 million per missed film into union health and retirement funds.
The settlement also requires Paramount to form a News Editorial Independence Board within 180 days of closing, made up of five veteran journalists appointed by the combined company’s board, to oversee CBS and CNN news operations, the AP reported.
Background
Twelve states, led by California Attorney General Rob Bonta, sued in July to block the combination, arguing it would “extinguish competition” for theatergoers and cable customers, according to the AP. U.S. District Judge Araceli Martínez-Olguín approved the consent decree Wednesday, calling it a “fair, reasonable, and good faith approach” to the states’ concerns.
Zaslav is exiting with the merger and is set to receive a golden parachute payout of at least $550 million, according to Variety. In his farewell video, shown only on WBD’s internal portal, Zaslav told employees, “For me, it’s been a great honor to be alongside all of you. I hope you take pride in what you’ve built, what you’ve created, and the role you’ve played in shaping an extraordinary history.”
What’s Next
The merger closes Oct. 6, after which Skydance Corp. begins trading on the New York Stock Exchange under ticker SKYD. Paramount’s theatrical release commitments begin immediately under the court-approved settlement, requiring 30 films in theaters annually for two years, then 32 annually for three years after.
Reporting from Variety, Deadline, The Associated Press and The Hollywood Reporter contributed to this story.
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