Skydance Confirms HBO Max and Paramount+ Merger Into One Streaming Service

Hollywood has spent the past year witnessing a fierce battle for control of Warner Bros. Discovery. Netflix had initially agreed to acquire the studio and its streaming operations, but Paramount Skydance launched a counterbid, resulting in a series of antitrust lawsuits and legal challenges that kept the outcome uncertain well into the fall.

That battle has now concluded. On Tuesday, October 6, Paramount finalized its acquisition of Warner Bros. Discovery, forming a new entity called Skydance, with the deal valued at approximately $110 billion, or around $111 billion when factoring in debt. David Ellison will lead the new company as chairman and CEO, with Ynon Kreiz serving as co-CEO.

With the paperwork complete, subscribers have finally received an official answer to a burning question. In its closing announcement, Skydance confirmed that HBO Max and Paramount+ will merge into a single streaming service in the future, stating that consumers can expect “significant improvements to its direct-to-consumer streaming products, which will unify into a single service over time.”

The announcement framed the merger as a technology initiative. According to the company’s closing press release, consumers can look forward to greater innovation from a company built around technology. Ellison described the moment as historic, stating, “Today is a historic day, not just for Skydance but for our entire industry.”

However, there is still no timeline for this merger. The phrase “over time” leaves it unclear whether the unified app will be available in months or years, and no name for the combined service has been disclosed. The company also mentioned it would apply the same operational strategy that enabled Paramount to surpass its synergy targets following the Skydance-Paramount merger.

Fans might feel a bit confused. Earlier this year, Ellison assured investors that the two services would be integrated into one platform, emphasizing that HBO should retain its identity. A source familiar with the company’s plans informed CNBC that HBO is likely to remain a sub-brand within the larger service.

Recently, however, indications suggested a more flexible arrangement. Deadline reported that Skydance’s list of key brands included both HBO Max and Paramount+, while HBO chief Casey Bloys, expected to oversee the streaming operation, referenced the successful HBO Max and Disney bundle when discussing the strategy. Forbes noted that Bloys hinted the two services might not fully merge, making the new “single service over time” language a significant clarification.

The scale of Skydance’s control is immense. The company now encompasses Paramount Pictures, Warner Bros., HBO, CBS, CNN, MTV, Comedy Central, Nickelodeon, Cartoon Network, and Food Network, along with Pluto TV and Discovery+, in addition to the two flagship streamers. It also holds franchises such as ‘The Lord of the Rings,’ ‘Game of Thrones,’ and ‘Yellowstone,’ along with DC Studios.

Skydance has committed to producing a minimum of 30 theatrical films each year and over 180 television shows and series. If the streamers do merge, projections suggest the combined service could boast a subscriber base exceeding 200 million, positioning it among the largest players in the streaming industry. The company’s Class B shares began trading on the New York Stock Exchange under the ticker SKYD on Tuesday.

Not everyone is celebrating this merger. A coalition named Block the Merger argues that it will lead to job losses, stifle creativity, undermine independent journalism, and threaten First Amendment rights. Although Paramount Skydance settled antitrust lawsuits with California and 11 other states, agreeing to establish independent editorial boards for CNN and CBS, industry experts have raised concerns about potential layoffs and the implications of consolidation.

For subscribers, the tangible effects of this merger will take time to materialize. Both apps are expected to continue operating for the time being, and any bundling or pricing changes may come first. Skydance has only indicated that unification is on the horizon, with further details yet to be revealed.

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