It has been confirmed: Paramount, under Skydance ownership, has finalized its $81 billion acquisition of Warner Bros. Discovery.
The agreement was completed on Tuesday, marking the emergence of a new powerhouse in Hollywood, now known simply as “Skydance.”
This merger unites two of the oldest film studios in America, bringing together HBO Max, which features titles like Harry Potter and Sinners, alongside networks such as CNN, with Paramount+, CBS, and beloved films like Top Gun and The Godfather.
All entities will operate under the leadership of billionaire David Ellison and newly appointed co-CEO Ynon Kreiz (previously associated with Mattel), intensifying the power consolidation in an industry dominated by a few major corporations.
Effect on Canadian Streaming
Ellison has indicated plans to eventually merge Paramount+ and HBO Max into a single streaming platform.
However, in Canada, HBO content is currently only available via Bell Media’s Crave, while Rogers has licensing agreements for Discovery content, and Corus holds rights to select Paramount titles, including the Cartoon Network.
These agreements are long-term, and although their expiration dates are unknown, the streaming environment in Canada is likely to remain unchanged for several years.
Although Skydance may aim to streamline its streaming services in the United States, it might not be financially viable in Canada, according to Stephen Zolf, a partner in the competition and communications group at the Toronto law firm Aird & Berlis.
“Our market is relatively small when compared to the U.S.,” he told CBC news. “For rights holders, it could be more economically advantageous to keep content with a local broadcaster like Crave, which generates significant revenue.”
Bell Media has stated that Crave will continue to be the exclusive platform for HBO and HBO Max content in Canada due to a long-standing agreement with Warner Bros. Discovery. (Graeme Roy/Canadian Press)
While access to streaming platforms may not change, price increases are anticipated, according to Mike Proulx, vice president and research director at Forrester, a market research and advisory firm.
“We’ve observed a surge of price increases over the last five years as every major streaming service has sought profitability,” he informed CBC News.
“Thus, you can expect that whatever arrangement Skydance ultimately adopts … it will likely lead to subsequent price increases to not only enhance profitability but to also address the debt the company will incur.”
Skydance Commits to More Films
As part of a settlement with U.S. states that opposed the merger, Paramount has pledged to release a minimum of 30 films annually for the next two years — and ensure their theatrical distribution.
Additionally, the company has committed to producing 32 films each year for the subsequent three years, although only half of these films will need to be “produced or jointly produced” by the merged entity.
This development is concerning for independent film enthusiasts, according to Keldon Bester, executive director of the Canadian Anti-Monopoly Project, who is particularly worried about the medium-term implications after this five-year obligation concludes.
“The film industry, in any form, is bound to persist well beyond that,” he remarked.
“From a consumer standpoint, I believe we will witness a continuation and acceleration of a trend where fewer films are released. And when films do come out, they will largely consist of major productions.”
An aerial shot of the Paramount logo on the water tower at Paramount Studios in Los Angeles, California. A state-led antitrust lawsuit regarding the Paramount Skydance merger with Warner Bros. Discovery was announced as settled in September, removing a significant legal obstacle for the deal. (Mario Tama/Getty Images)
Negative Outlook for Canadian Production
Even in the short term, Paramount’s commitment to producing more films may not translate into increased opportunities for Canadian talent, including actors, directors, and crews.
The company has also promised to boost its film production spending in the U.S. by a minimum of $1.5 billion over the next five years.
Furthermore, Skydance has already indicated the need to identify areas to cut costs, and according to a report from Variety, some of these savings may come from job cuts.
A report from Los Angeles County in August projected that the merger could lead to the loss of 4,500 film and television jobs in L.A. over the next three years.
Bester believes this will also result in fewer job opportunities in Canada: “We should anticipate a more intense competition over where productions take place as this market continues to shrink.”
Actress Sally Field expressed her opposition to the Paramount-Warner merger while accepting an award at the Emmys in September. (Patrick T. Fallon / AFP/ Getty Images)
Reactions from Hollywood
In April, thousands of actors, writers, directors, and other industry professionals voiced their “unequivocal opposition” to the Paramount-Warner merger.
An open letter — signed by prominent critics of the deal, including Jane Fonda and Mark Ruffalo, as well as notable figures like Canadian director Denis Villeneuve and J.J. Abrams — cautioned about potential job losses and “less choice for viewers in the U.S. and globally.”
Conversely, some celebrities supported Paramount as Ellison reiterated his dedication to filmmaking.
During CinemaCon this past spring, the company premiered a polished short film about the studio, directed by Jon M. Chu and narrated by Tom Cruise — who concluded the segment atop the iconic Paramount water tower, proclaiming that “the future is paramount and it looks quite promising from here.” Director James Cameron also reaffirmed his backing for Ellison.
When receiving her Emmy last month, Remarkably Bright Creatures actress Sally Field — who also signed the open letter opposing the Paramount-Warner merger — emphasized that “unique storytelling is essential” and “we must not allow those voices to be silenced, compromised, or merged.”
Trump and CNN
U.S. President Donald Trump has consistently criticized what he perceives as unfavorable coverage from CNN (most recently attempting to exclude the network from the White House entirely). Throughout the Warner acquisition process, his administration was vocal about its hopes for a new owner.
In December — shortly after Paramount initiated its aggressive bid for Warner — Trump remarked that CNN disseminated “poison and lies,” adding that “the individuals who have managed CNN for an extended period are a disgrace” and “it is crucial that CNN be sold.”
The White House targeted CNN again in March, criticizing the network’s coverage of the U.S.-Israeli conflict with Iran. At that time, Secretary of Defense Pete Hegseth told reporters that “the sooner David Ellison takes control of that network, the better.”
Ellison has assured that editorial independence will be preserved at CNN, and the company has also agreed to establish a “News Editorial Independence Board.”
However, skeptics point to previous turmoil at CBS under Skydance’s management — and are doubtful that this new board will significantly influence operations, given that Ellison will have substantial oversight over appointments. Outside of this board, however, the merged company has retained Mark Thompson as CNN’s editor-in-chief.
David Ellison, right, and wife Sandra Lynn Modic arrive at the White House for a state dinner hosted for China’s President Xi Jinping last month in Washington. (Carolyn Kaster/The Associated Press)
Trump has maintained a longstanding relationship with the Ellison family.
The head of Paramount reportedly hosted a dinner in Washington in Trump’s honor back in April, coinciding with the day Warner shareholders approved the merger.
In June, just two days after the U.S. Justice Department announced it would not challenge the merger, Ellison attended an Ultimate Fighting Championship event on the White House lawn for Trump’s 80th birthday (which was streamed on Paramount+).
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