It's official: David Ellison's Skydance is taking over Warner Bros. Discovery (WBD) in a deal that's been cooking for over a year. This massive merger officially closes Tuesday, creating one of the biggest media conglomerates in history, which will be rebranded as simply Skydance and trade under the ticker "SKYD".

The Road to the Deal

The whole saga kicked off back in June 2025 when WBD announced plans to split. But then, in August, Skydance, founded by Ellison (yeah, son of Oracle's Larry Ellison), merged with Paramount. Almost immediately, Ellison started making big moves, snagging the UFC rights for $7.7 billion and securing deals for the Call of Duty movie and "Stranger Things" creators.

Paramount Skydance started lowkey trying to buy WBD in September 2025, but got rejected three times. Their third offer was around $24 per share. WBD then said they were open to selling, with Netflix and Comcast also throwing their hats in the ring. By November, all three had submitted formal bids.

Netflix seemed to lock it down in December 2025, agreeing to buy WBD's film and streaming assets for nearly $83 billion. But Paramount Skydance wasn't having it and launched a hostile bid, going straight to WBD shareholders with an all-cash $30 per share offer. Ellison even told CNBC, "We're really here to finish what we started."

The Bidding War and Legal Battles

WBD's board initially recommended shareholders reject Paramount's bid, even with Larry Ellison backing the financing. Paramount sued WBD and CEO David Zaslav in January 2026, questioning the fairness of their deal with Netflix. Netflix tried to adjust their offer, but by February 2026, after Paramount sweetened its deal with a "ticking fee" and agreed to cover any breakup fee to Netflix, Netflix backed off.

Paramount Skydance and WBD finally signed a definitive merger agreement on Feb. 27, 2026. WBD shareholders gave the green light in April 2026, and the Department of Justice gave its approval in June 2026. But then, California AG Rob Bonta and other state attorneys general sued in July 2026, citing antitrust concerns about potential price hikes and lower quality content.

The Final Hurdles

Even with a temporary restraining order, Paramount agreed to delay the closing until June 2027. Meanwhile, EU regulators gave their approval in July 2026 with some concessions. The big win came September 21, 2026, when Paramount and the state attorneys general settled the lawsuit, clearing the path for the merger. The settlement included rules about the number of movies and the budget for them.

What's Next

Now, with the deal closed, the combined company is Skydance. Mattel's former CEO, Ynon Kreiz, who was known for turning things around and bringing "Barbie" to the big screen, will be co-CEO alongside Ellison. They've already announced their leadership team, with Bari Weiss and Mark Thompson heading up CBS and CNN respectively.

Why it matters

This merger is a massive shake-up in the entertainment industry. Combining Paramount and Warner Bros. Discovery creates a media giant that controls a huge chunk of streaming and cable content, potentially changing how we consume movies and TV.