Paramount Skydance has announced plans to merge its Paramount+ streaming service with HBO Max, following the company’s $US110 billion acquisition of Warner Bros Discovery. The transaction, formally signed on February 27, is expected to close in the third quarter. Paramount is a global media company focused on creating and distributing content across various platforms. It operates through segments like filmed entertainment, networks, and streaming.
The deal follows months of effort by Paramount chief executive officer David Ellison to acquire the Hollywood studio and related assets, including HBO, CNN, and TNT. Paramount secured the deal by outbidding Netflix, agreeing to pay $US31 a share in cash. During an investor call, Ellison stated there were no plans to cut production, emphasising the deal’s pro-competition, pro-consumer, and pro-creative community stance. The company is targeting 15 theatrical films per year, per studio, resulting in at least 30 films annually.
Ellison said the merger is about “reinventing the business,” not consolidation. Chief financial officer Dennis Cinelli noted that the companies are projected to have $US69 billion in pro forma revenue and $US18 billion in estimated earnings before interest, taxes, depreciation, and amortisation by 2026. The combined entities will carry a net debt of $US79 billion. Even with the integration of the streaming platforms, Paramount intends to maintain HBO as a distinct brand.