# Paramount and Warner Bros. Merge Creates Skydance Media Giant

> Paramount's $110 billion merger with Warner Bros. forms Skydance, testing France's cultural exception rules.
- Title: Paramount and Warner Bros. Merge Creates Skydance Media Giant
- Summary: Paramount's $110 billion merger with Warner Bros. forms Skydance, testing France's cultural exception rules. Paramount's merger with Warner Bros. creates…
- Keywords: paramount, warner bros, skydance, cultural exception, france, media merger, streaming services, smad regime, canal plus, ugc, news, world
- Source: France24 — https://france24.com/en/france/20261017-will-paramount-creation-of-skydance-test-france-cultural-exception
- Read time: 2 min
- Topics: paramount, warner bros, skydance, cultural exception, france, media merger, streaming services, smad regime, canal plus, ugc, news, world
## Paramount and Warner Bros. Merger
Paramount completed a $110 billion acquisition of Warner Bros. Discovery this month, creating Skydance.
## Federal Ruling on Antitrust
A federal ruling against 12 US states blocked the merger on antitrust grounds, allowing final approval just one week before the deal closed.
## Skydance's Debt and Strategy
Skydance began with nearly $80 billion in debt but aims to reduce costs by $6 billion through structural and tech-stack savings over three years.
## France's Cultural Exception
France requires foreign media to invest 20-25 percent of French revenue in local creative content under its cultural exception policy.
## SMAD Regime Obligations
The SMAD regime mandates foreign streaming services to contribute 20-25 percent of French revenue to French-language productions.
## Streaming Services Challenge
Netflix, Prime Video, and Disney+ filed appeals with France's highest court over new rules requiring 20 percent investment in animation and documentaries.
## European Commission Approval
The European Commission approved Skydance's merger with conditions, including unwinding ties with United International Pictures within thirteen months.
## Content Investment Pressure
Skydance must produce at least 30 films per year for the first two years, rising to 32 films over the next three years.
## French Film Unions' Concerns
French film unions fear Skydance will prioritize global franchises over smaller French films and original dramas.
## Canal+ and UGC Negotiations
Canal+ is negotiating to acquire a minority stake in French cinema group UGC, offering €980 million over five years for French cinema.
## Cultural Release Tension
France's media release timeline delays films for 15-17 months before moving to streaming, protecting cinema revenue while funding local content.
## Potential Outcome
Skydance may prioritize commercial films over mid-budget and independent works, risking French intellectual property value.
## Key takeaway

Paramount's merger with Warner Bros. creates Skydance, a media giant that must balance global scale with France's cultural investment requirements.