Paramount Closes $110 Billion Warner Bros. Merger After Months Of Controversy

0:28This episode is brought to you by Google Chrome. Tuesday, creating a new media mega player called Skydance that will control large swaths of the entertainment industry. It also ends a months-long saga as the merger has drawn widespread opposition in Hollywood. Skydance shares will start trading on the stock exchange under the ticker symbol SKYD, the company said on Tuesday, while Warner Brothers shares will cease trading. The merger combines two media giants that already had control over significant assets across the industry, including CNN, CBS, HBO, and a suite of cable networks, film studios, New Line Cinema and Miramax, among others, and streaming services, including Paramount Plus and HBO Max.

1:10It will also control a number of major franchises and brands, including Harry Potter, Game of Thrones, and more. The deal's closure Tuesday comes after a months-long legal battle as states fought the merger, alleging it violated federal antitrust laws. But Attorneys General ultimately settled with Paramount last month, rather than taking the case to trial, paving the way for the merger to go through. But the merger has still faced widespread opposition in Hollywood, as opponents have argued it will lead to fewer jobs, less ambitious content, and higher prices. They've also criticized state's settlement with Paramount as being overly deferential to the media giant.

1:49CEO David Ellison has rebuffed critics' concerns, though, arguing Tuesday that the new company will be a stronger competitor in the media industry with the talent, resources and reach to tell great stories in every genre on every platform for audiences everywhere. But it still remains to be seen how Skydance's new operations will play out in practice. In terms of the new firm's leadership, Mattel's CEO is Skydance's new co-CEO alongside Ellison. Now, while Ellison has long held the company's ambitious plans to become a media powerhouse, the company is also going into its new era saddled with nearly$80 billion in debt.

2:26Under the terms of its financing deal, Skydance has to significantly erode that debt by 2029, or else Ellison's billionaire father, Larry Ellison, will be on the hook to cover it using his own money. For more on this story, click the link in the description.

3:01We'll see you next time.