One hundred eleven billion dollar deal closes

Paramount Skydance completed its merger with Warner Bros. Discovery today after Supreme Court Justice Elena Kagan rejected a last-ditch effort to block the combination of two major entertainment companies.

New company combines studios and streaming

The merged company, called Skydance, combines two major movie studios, streaming services Paramount Plus and HBO Max, CBS, CNN, and live sports including CBS Sports and TNT Sports.

Judge ruled merger violated antitrust law

In July, US District Judge Araceli Martínez-Olguín in the Northern District of California ruled the combination would likely reduce competition substantially and violate antitrust laws.

California settled lawsuit in September

California and eleven other states sued to block the deal. California settled the lawsuit last month, and the other states involved went along with the compromise.

Judge approved settlement on September thirtieth

Judge Martínez-Olguín approved the settlement on September thirty, saying it represents a reasonable resolution. The deal addresses film distribution and cable channel licensing concerns through specific requirements.

“represents a reasonable factual and legal resolution of the dispute”

Supreme Court rejects final legal challenge

Five consumers sought to block the deal through the courts. The Ninth Circuit rejected their request, and Supreme Court Justice Elena Kagan denied their emergency application yesterday without comment.

Skydance faces eighty billion dollars in debt

Reuters reports Skydance is expected to carry about eighty billion dollars in debt, putting pressure on David Ellison to grow streaming, preserve cable cash flow and improve theatrical film performance.