Paramount and Warner Bros' deal is about merging studios, and a whole lot more

"The nearly $111 billion Paramount-Warner marriage would unite their studios and their back catalogue of shows and movies. It would add such franchises as D.C. Comics, Harry Potter and Game of Thrones to Paramount's Top Gun, Mission Impossible and Star Trek powerhouse. Paramount+ and HBO Max. CBS and CNN."

"Paramount Skydance Chairman and CEO David Ellison is relying largely on the financial backing of his father, Larry Ellison the co-founder of software giant Oracle, the lead investor in TikTok US, and one of the richest people on the planet. The Ellisons have staged what appears to be a lightning-swift ascent through social and legacy media relying heavily on their connection to the Oval Office."

"Should the Ellisons receive a green light from regulators to proceed with the deal, the minnow will have swallowed the whale. Warner currently has more than five times the market value of Paramount. That's on top of acquiring Paramount itself and a major stake in TikTok US all in less than a year."

"History shows such mega-mergers often end in tears. The movie business is expensive. Cable television is highly profitable but in steep decline as viewers cut the cord. The combined company will be saddled with debt."

Warner Bros. Discovery has agreed to Paramount Skydance's takeover bid, creating a nearly $111 billion merger that unites major Hollywood studios, streaming services, and television news divisions. The deal combines valuable franchises including D.C. Comics, Harry Potter, Game of Thrones, Top Gun, Mission Impossible, and Star Trek, while merging Paramount+ with HBO Max and CBS with CNN. Paramount Skydance Chairman and CEO David Ellison, backed by his father Larry Ellison—Oracle co-founder and one of the world's richest individuals—has rapidly ascended through media and technology sectors. The Ellisons have acquired Paramount, a major TikTok US stake, and control Oracle, which operates critical digital infrastructure for American commerce and government. Despite the strategic consolidation, industry experts warn that such mega-mergers historically face challenges, particularly given the expensive movie business, declining cable television revenues, and substantial accumulated debt.

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