With Paramount CEO David Ellison overcoming the final hurdle blocking his expansion of the Paramount media empire, the billionaire media executive announced on X (formerly Twitter) that the newly merged entity combining Paramount and Warner Bros. Discovery will be named Skydance.
The announcement comes after the company entered into a consent decree to settle antitrust claims brought by a group of 12 state attorneys general, who had sued in July over concerns that the merger would concentrate too much control over news networks, cable TV and the film industry. With the last legal opposition cleared, the path was open to finalize the massive the $111 billion merger on Sept. 21.
“Together, we are Skydance: a creative-first home for bold, quality storytelling,” Ellison posted on Friday. “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.”
There was a year-long bidding battle for Warner Bros. Discovery, leaving Ellison as the top bidder after Netflix dropped out. The name Skydance comes from Ellison’s love of aviation and aerobatic “skydancing.” David’s father is Larry Ellison, co-founder and CTO of Oracle, and one of the richest people in the world.
A Hollywood empire of studios, news, networks and streamers
As viewers, it’s unclear how streaming content from Warner Bros., HBO and Paramount via apps like HBO Max and Paramount Plus will change. But the merger will undeniably affect employees at the mega media company, now one of the largest in history. Much of the legal opposition concerned their fate, and the consent decree attempted to safeguard employment, film production and distribution and consumer pricing.
In practice, employees usually lose out in corporate consolidation, regardless of protections. Harvard Business Review estimated that up to 30% of workers get laid off in mergers like these, where there’s a significant overlap in the business, though that oft-cited figure is from 2017.
The bigger worry, though, is media monopoly. Critics worry that adding CNN to the company’s portfolio could lead to widespread restructuring and corporate upheaval, similar to recent struggles at the CBS News division. Corporate convergence also risks homogenizing news content by potentially suppressing divergent viewpoints — all for minimal reward, given that CBS’s own ratings are reportedly way down.
“If this trend of consolidation continues, we will be left searching dominant media outlets in vain for news and information that challenges the powerful and stands up for people who are struggling to pay monthly bills, put food on the table and engage in local civic life,” nonprofit watchdog Free Press co-CEO Jessica J. González said in a prepared statement earlier this week.
The Block the Merger coalition also posted a follow-up statement: “Allowing the Paramount Skydance-Warner Bros. Discovery merger to move forward with no meaningful structural remedies will cost jobs, mute creativity, weaken independent journalism, and damage our First Amendment rights. The ripples of this merger will be far-reaching, long-lasting, and impossible to contain.”
The Writers Guild of America East and Writers Guild of America West had filed a separate lawsuit to halt the merger, alleging that it was illegal and would harm writers. Once the state attorneys general backed out of the battle, WGA cited an inability to sustain legal costs on its own and dropped its companion lawsuit.
As part of the consent decree, Paramount agreed to establish an oversight board of journalists to protect the editorial independence of CNN and CBS News. Critics have called the oversight board “toothless,” noting that its members are appointed and paid by the company, that its authority is unclear and unbinding, and that final control rests with Ellison.
We reached out to Skydance for comment and didn’t immediately hear back.
Disclosure: Lori Grunin has stock in Paramount from when CNET was owned by CBS.
