After Netflix unexpectedly withdrew its bid to acquire Warner Bros. Discovery (WBD), Paramount Skydance took action to purchase the company. On Monday, CEO David Ellison informed investors of plans to merge Paramount+ and HBO Max into one platform.
“Our combined company will host some of the greatest, most recognizable franchises globally, including ‘Harry Potter,’ ‘Top Gun,’ ‘Star Trek,’ ‘Looney Tunes,’ ‘Game of Thrones,’ and ‘Yellowstone.’ This creates a huge opportunity, and we aim to invest in both studios’ creative engines, making it the go-to place for industry-leading creative talent,” Ellison stated.
Ellison assured investors that HBO’s studio identity and creative vision would remain intact, saying, “HBO should stay HBO.” He pledged a 15-film annual theatrical slate per studio, totaling at least 30 releases annually.
This announcement follows Paramount’s recent $110 billion agreement to acquire WBD. The merger combines extensive film, TV, and news assets under one entity, likely altering the Hollywood landscape. It reflects consolidation trends similar to Disney+ and Hulu’s merger.
With a projected 200 million subscribers, the new streaming service aims to rival top streaming giants.
However, the merger faces U.S. Department of Justice scrutiny over media concentration and competition concerns. California Attorney General Rob Bonta promised a thorough acquisition review.
Industry experts warn of the merger leading to significant job cuts, increasing employee concerns about layoffs and wage cuts. Editorial independence concerns arise due to the Ellison family’s political ties to Donald Trump and scrutiny of CBS and CNN newsrooms.
Ellison expressed confidence in the merger’s progress, describing it as “pro-competition, pro-consumer, and pro-creative community,” aimed at strengthening Hollywood and expanding consumer choices while creating opportunities for creative talent.