David Ellison’s nearly year-long journey to close the deal had its ups and downs.
Many of Hollywood’s outspoken actors, writers and producers have rallied behind efforts to block the merger, arguing in an open letter earlier this year that continued consolidation of the entertainment industry would “threaten the sustainability of the entire creative community.”
After the deal was approved by the U.S. Department of Justice, the European Commission and dozens of other countries around the world, it was delayed by a lawsuit led by California’s Democratic Attorney General Rob Bonta.
Bonta and other attorneys general argued that the deal, if reached, would reduce competition and potentially jeopardize CNN’s journalistic independence.
But what once looked like a formidable legal challenge quickly ended in failure.
Paramount Skydance, led by Ellison, reached a deal with the States on September 21 that requires the combined company to release 30 films per year for the first two years of the deal, followed by 32 films in each of the next three years – or pay a fee for missing that goal. Ellison also pledged to create independent editorial boards overseeing the operations of CNN and CBS News.
J. Christopher Hamilton, a Syracuse University professor and entertainment lawyer, said finalizing the merger is “a bittersweet victory, depending on which side of the table you sit on.”
“There is reason to rejoice and be excited, but there is also a sad reality when layoffs start hitting people unexpectedly,” he said. “And there are fewer and fewer outlets for character-driven and arthouse pieces, with the true voices of independent cinema getting a chance to be heard.”
Ellison and Kreiz described the merger and rebranding as “the beginning of a new era in entertainment.”
“This is not a merger of convenience,” they write in their note. “This is the start of a new era in entertainment, and we wanted a name that looked to the future rather than one that simply brings together the past.”
But both men hinted that layoffs are likely, writing that “integrating two companies will result in changes, including difficult decisions that will impact our workforce. We are committed to managing this process in a thoughtful and respectful manner.”
Restructuring and upheavals have already taken place at the management level.
Ellison enlisted Kreiz, known for cutting costs at Mattel, where he served as CEO and helped transform Barbie from a doll into a Hollywood blockbuster.
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Paramount Completes Merger with Warner Bros. for 110 billion dollars
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HBO’s Casey Bloys will lead the company’s combined streaming efforts, with Paramount streaming chief Cindy Holland announcing her departure last week.
Mike de Luca and Pam Abdy, Warner’s film chiefs, also left, and Ellison named Paramount Pictures co-presidents Dana Goldberg and Josh Greenstein to lead the expanded film division.
On the news side, Mark Thompson remains at CNN as president and editor-in-chief of CNN Worldwide. Bari Weiss will continue to lead CBS News as executive editor.
Skydance said in a press release Tuesday that Ellison “will chair the Skydance Board of Directors and continue to serve as Skydance’s Chief Executive Officer.” The board will also add Kreiz, media mogul Laurene Powell Jobs and Bobby Kotick, founder and former CEO of Activision.
Hamilton, who has worked at Hollywood companies such as Lionsgate and Viacom, said management shakeups are commonplace.
“I have no doubt that the Ellisons are going to make a lot of noise when it comes to shaking up Hollywood, running these traditional media companies as well as this new conglomerate,” the entertainment lawyer said.
However, he added, “I question sincerity and consistency when the pressure mounts and it’s contrary to what they want to do, whether it’s AI regulations or union expectations, whether it’s telling stories and accurately reflecting diverse voices. When the pressure comes, are they really going to be fair? Or are they going to say, ‘No, it’s my ball, I control the game.’
It’s a concern that opponents of the merger have had since it was first mooted as a possibility. Critics warned the deal would lead to layoffs, fewer opportunities and higher prices.
On Monday, a group of individuals filed an emergency request to the Supreme Court for involvement in the merger, saying the terms of the interstate agreement “do not preserve competition between Paramount and Warner Bros.” The Supreme Court rejected the court’s request for intervention.
Actor Mark Ruffalo, one of the most loyal members of the Block the Merger movement, has pledged to continue opposing media consolidation.
“It was never about just one merger: it was about fighting corrupt billionaire oligarchs who trampled on the interests of ordinary people to line their own pockets,” Ruffalo wrote in an article on X last week. “We’re still in this fight.”
Skydance’s stock price had fallen 2.5% as of Tuesday afternoon, closing at $9.53 per share. Trump told reporters he was “happy” that the deal had officially closed, saying it was a “great merger.”
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