In light of the unexpected announcement that Netflix had pulled its offer to buy Warner Bros. Discovery (WBD), Paramount Skydance has stepped in to acquire the company. On Monday, CEO David Ellison shared during an investor call that the plan is to integrate Paramount+ and HBO Max into one cohesive platform. 

“The new company will be the home for many of the most iconic and cherished franchises globally, ranging from ‘Harry Potter’ to ‘Top Gun,’ ‘Star Trek’ to ‘Looney Tunes,’ ‘Game of Thrones’ to ‘Yellowstone.’ This provides a significant opportunity, and we are determined to fuel the creative capabilities of both studios, positioning them as the prime destination for the industry’s top creative talent,” Ellison stated during the call.

Ellison further assured investors that HBO’s brand and creative direction as a studio would remain intact, declaring, “Our belief is HBO should continue to be HBO.” He also promised to sustain a strong theatrical lineup, with a commitment to producing 15 films each year for each studio, resulting in at least 30 theatrical releases annually.

This news follows Paramount’s recent deal to acquire WBD in an arrangement valued at $110 billion. The merger will unite a wide range of film, TV, and news assets under a single corporate roof and is anticipated to significantly alter the Hollywood landscape as it currently exists. It also continues the trend of consolidation among other leading streaming services, similar to the merger of Disney+ and Hulu.

With a forecasted subscriber count exceeding 200 million, the new streaming service will be positioned as a major competitor amongst the leading streaming platforms.

Nonetheless, the merger faces intense scrutiny from the U.S. Department of Justice due to concerns about media consolidation and competition in the market. Recently, California Attorney General Rob Bonta pledged to thoroughly review the acquisition. 

Moreover, industry experts caution that the merger could lead to considerable job reductions, raising employee worries regarding layoffs and salary cuts. There are also apprehensions about editorial independence, particularly considering the Ellison family’s political ties to Donald Trump and heightened scrutiny over the newsrooms at CBS and CNN.

Ellison expressed optimism that the merger would proceed seamlessly. He characterized the acquisition as “pro-competition, pro-consumer, and pro-creative community,” highlighting that it will “forge a more robust Hollywood and global production landscape, one that enhances consumer options and opens doors for creative talent,” he concluded.