By Ben Thompson
The dust may have settled on David Ellison’s £82bn acquisition of Paramount and Warner Bros Discovery, but inside Skydance’s new media empire, uncertainty hangs thick in the air. With over 53,000 employees across two historic Hollywood studios, premium cable networks, and major news organisations, the question on everyone’s lips is simple: what comes next?
A Deal Forged in Controversy
The path to this megamerger was anything but smooth. Ellison, 43, described the process as “downright ugly” – a diplomatic understatement for a saga that saw political heavyweights weigh in, rival bidders circle, and industry veterans question the wisdom of concentrating so much power in so few hands.
The $110bn deal, which stunned Hollywood when it closed earlier this month, brings together an unprecedented portfolio: Paramount Pictures, Warner Bros, HBO, MTV, Discovery Channel, CBS, and CNN. It represents not just the largest media merger in recent memory, but a fundamental reshaping of how entertainment and news will be produced, distributed, and consumed globally.
“It feels like the calm before the storm,” admits one senior executive at the newly formed conglomerate. “David has got what he wanted, but now there is a price to pay.”
The Cost of Empire: What Will Be Cut?
Ellison’s ambition extends beyond mere consolidation. He’s set his sights on slashing £80bn in debt within three years, with $6bn in savings targeted annually. For Skydance’s sprawling workforce, that translates into sleepless nights and whispered conversations in canteens.
Management’s internal memo was blunt: “difficult decisions that affect our workforce” are coming. While executives and financial backers publicly steer away from discussing mass layoffs, the message is clear – cuts inevitably mean jobs.
“It is business as usual but, to be honest, everyone is worried about what happens next,” says another Skydance insider. “The writing is on the wall.”
These concerns aren’t limited to corporate corridors. Across newsrooms from New York to London, journalists are grappling with a new reality. Ellison’s reported closeness to Donald Trump – whose father Larry co-founded Oracle – has sparked fresh anxiety about editorial independence, particularly given recent controversies at CBS.
News Divisions Under Scrutiny
The political dimensions of this merger have already begun playing out in earnest. Just months before the deal finalised, Paramount found itself at the centre of a firestorm when it cancelled the long-running Late Show with Stephen Colbert. Host Stephen Colbert had suggested the network had paid a “big fat bribe” to settle a $16m lawsuit with former President Trump.
US regulators ultimately approved the merger, but not without conditions. Kenneth Weinstein, a known associate of Trump, was appointed as ombudsman at CBS News to investigate “complaints of bias” – a move that sent shivers through the journalism community.
Christiane Amanpour, CNN’s veteran international anchor, publicly criticised what she called the “ideological realignment of CBS.” Speaking to colleagues, she warned that proposed changes and cuts could lead to the potential “destruction” of flagship programmes like 60 Minutes. This week, Amanpour announced her departure from CNN after 43 years – though sources insist her exit isn’t directly linked to the new ownership.
Still, relief rippled through CNN’s Atlanta headquarters when Skydance confirmed Mark Thompson – the respected former New York Times boss and BBC director general – would remain as chair and chief executive. Many had feared a sweeping overhaul that might see controversial figures installed in key positions.
Streaming Wars and Hollywood’s Future
Despite the turmoil, Ellison is doubling down on content creation. His promise to invest an estimated $30bn annually across all divisions includes a commitment to release at least 30 major films per year until 2031 – a bold pledge that could revitalise both Paramount and Warner Bros’ struggling film operations.
Warner Bros has endured one of its worst box office seasons in years, with recent flops like Tom Cruise’s Mission: Impossible – Dead Reckoning Part Two (referred to as “Digger” in industry circles) failing to meet expectations. In response, Ellison has placed Paramount’s leadership in charge of both studios, signalling his intent to restore Hollywood’s magic.
For British television fans, the implications are significant. WBD’s Leavesden studio – home to DC superhero franchises and the upcoming Harry Potter series for HBO Max – stands to benefit enormously from increased investment. Similarly, UK broadcasters are watching closely as Skydance navigates commitments made to secure regulatory approval, including promises to keep Channel 5 operating as a free-to-air public service broadcaster until at least 2034.
However, questions linger about the long-term viability of traditional cable channels. MTV, Nickelodeon, and other linear networks still generate 70% of profits despite declining viewership – a paradox that analysts say Skydance must resolve quickly.
“In a world where the majority of consumers can access content through a smart TV, it should be a natural consideration to sell physical broadcast assets,” explains Brian Wieser, chief executive of consultancy Madison and Wall. “But timing is everything – they need to maximise returns while demand still exists.”
Battle Lines Drawn Beyond Hollywood
The merger’s ripple effects extend far beyond Tinseltown. In the UK, Paramount recently shifted its £300m TV advertising sales business from Sky to Channel 4 – a move that could signal broader realignments in European media markets.
Meanwhile, BT appears poised to exit its joint venture with WBD – TNT Sports – bringing an end to the telecom giant’s 15-year experiment in pay-TV sports. Though BT wrote off its entire stake following last year’s Champions League rights defeat, the merger ensures football fans won’t face yet another streaming subscription hurdle.
Perhaps most intriguingly, reports suggest Elon Musk has invested $1bn for a stake in the new entity. Whether this signals further rightward drift or simply reflects business pragmatism remains to be seen – but it underscores how this merger has become a lightning rod for debates about media ownership, political influence, and democratic discourse.
Why it Matters
This isn’t just another corporate consolidation – it’s the creation of a media behemoth that will shape what billions of people watch, read, and think for generations to come. From Hollywood blockbusters to breaking news, from children’s programming to investigative journalism, Skydance now controls an unprecedented swathe of global culture. As the company embarks on its ambitious cost-cutting programme, the choices made in boardrooms will determine not only shareholder value but also the future of creative expression, journalistic integrity, and informed citizenship in an increasingly polarised world.
