# Paramount and Warner merge into Skydance giant

> A one hundred eleven billion dollar deal combining two major studios, streaming services and cable networks completes after legal challenges fail.
- Title: Paramount and Warner merge into Skydance giant · Ars Technica
- Summary: A one hundred eleven billion dollar deal combining two major studios, streaming services and cable networks completes after legal challenges fail. Paramount…
- Keywords: paramount, warner bros. discovery, skydance, merger, antitrust, streaming, david ellison, cbs, cnn, hbo max, technology, science
- Source: Ars Technica — https://arstechnica.com/tech-policy/2026/10/paramount-completes-111b-warner-merger-creating-skydance-behemoth
- Published: 2026-10-06T17:33:44+00:00
- Read time: 1 min
- Topics: paramount, warner bros. discovery, skydance, merger, antitrust, streaming, david ellison, cbs, cnn, hbo max, technology, science
## 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.
## Key takeaway

Paramount Skydance completed its one hundred eleven billion dollar merger with Warner Bros. Discovery after courts rejected attempts to block the combination of two major entertainment companies.