David Ellison’s Skydance Paramount has finalized its acquisition of Warner Bros. Discovery for $111 billion, overcoming significant antitrust opposition from U.S. state authorities.
The deal faced delays due to potential violations of Section 7 of the Clayton Antitrust Act of 1914, which prohibits mergers that could reduce competition or create monopolies. Twelve states with Democratic majorities, including California, New York, and Washington, filed lawsuits to block the merger, citing concerns about film companies’ dominance in rental fees and distribution.
To secure approval, 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 create at least $300 million in jobs over five years.
The merger required complex financial maneuvers. Skydance raised $46.7 billion through syndicated debt to complete the acquisition, with state investment funds from Gulf countries holding 38.5% of shares. The company circumvented U.S. restrictions on foreign ownership by ensuring only U.S.-based entities held voting shares, allowing it to increase foreign capital stakes to 49.5%.
Additionally, the transaction has drawn attention for its connections to former President Donald Trump. Larry Ellison, father of Skydance CEO David Ellison and a close ally of Trump, became the world’s richest person in September 2025 with an estimated wealth exceeding $400 billion. Trump also pressured Warner Bros. Discovery-owned CNN over broadcasting decisions, leading to a $16 million settlement between Paramount and Trump.
The combined entity now controls major film studios and streaming services including HBO Max and CNN, while facing a total debt of $82 billion—more than seven times its pre-merger annual revenue.
