Key Takeaways
- Paramount expects to close its $110 billion Warner Bros. Discovery takeover on Oct. 6 after resolving a multistate antitrust lawsuit.
- David Ellison will lead the combined company with Mattel CEO Ynon Kreiz as co-CEO, while HBO chairman Casey Bloys could oversee streaming programming after Cindy Holland’s departure.
- Paramount plans roughly $6 billion in cost savings as the settlement commits it to at least 30 theatrical releases annually and independent editorial oversight for CBS News and CNN.
Paramount's $110 billion takeover of Warner Bros. Discovery is reportedly entering its final days after one of Hollywood's most contentious merger battles. With a federal judge approving the settlement in the multistate antitrust lawsuit that threatened to derail the acquisition, CEO David Ellison is preparing to take control of Warner Bros., HBO, CNN, and a massive portfolio of film and television properties.
According to CNN, Paramount executives have spent the past week finalizing the transaction, including arranging financing and preparing to announce the combined company's leadership. A new corporate name could be revealed as early as Thursday, with the companies now expecting the merger to close Oct. 6.
Paramount has also launched a major bond offering to finance the acquisition, reportedly attracting $109 billion in investor demand. The company is pitching approximately $6 billion in cost savings as it prepares to manage the enormous debt associated with the deal.
Executive shake-ups have already begun.
Paramount streaming chief Cindy Holland is departing ahead of the merger, clearing the way for HBO chairman Casey Bloys to reportedly assume the top programming position across the combined company's streaming operations.
"As David readies for the next phase of his vision, we've discussed my role and the future of the combined businesses," Holland wrote in a memo to colleagues. "David is optimizing for HBO stability as we move into this next chapter, and I fully support that."
Additional leadership announcements are expected in the coming days, including details about the future of CBS News and CNN.
The merger's anticipated closing follows months of legal challenges that nearly pushed the transaction into a March 2027 antitrust trial. California Attorney General Rob Bonta led a coalition of 12 states seeking to block Paramount's acquisition, arguing that combining two major Hollywood studios would reduce competition, eliminate jobs and increase costs for consumers.
The states ultimately reached a settlement with Paramount after negotiations that reportedly included financial penalties if the company fails to fulfill Ellison's commitment to release at least 30 theatrical films annually. The agreement also establishes an independent editorial board overseeing CBS News and CNN.
The settlement hasn't silenced Hollywood's opposition. Mark Ruffalo publicly urged Bonta not to abandon the lawsuit, pointing to thousands of entertainment workers who signed petitions against the merger.
"Don't you dare, Rob Bonta, do not cave," Ruffalo wrote.
The acquisition itself began with a bidding war against Netflix, which initially reached an agreement to purchase Warner Bros. Discovery's studio and streaming businesses. Paramount repeatedly increased its offer until Warner accepted its proposal for the entire company. Netflix declined to match the final bid and walked away with a $2.8 billion breakup fee.
Even with the legal battle nearing resolution, Ellison inherits considerable challenges. The merger has already driven uncertainty among Warner Bros. employees and creative talent, while the combined company's debt burden and planned cost reductions have raised concerns about additional layoffs.
Paramount is also now paying for every additional day. Beginning Oct. 1, a fee worth approximately $7 million per day began accruing for Warner Bros. Discovery shareholders until the acquisition closes.
