Paramount has completed its $81-billion US takeover of Warner Bros. Discovery, creating one of the world’s largest entertainment companies and potentially reshaping the streaming and film industries in Canada.
The combined company, now operating under the Skydance name, brings together two historic Hollywood studios and an enormous catalogue of entertainment and news properties. HBO Max, CNN and franchises including Harry Potter will now sit alongside Paramount+, CBS and films such as Top Gun and The Godfather.
The entertainment giant will be led by co-CEOs David Ellison and Ynon Kreiz, the former Mattel chairman and CEO who was involved in bringing Barbie to the screen.
For Canadian viewers, however, the immediate streaming landscape is unlikely to change significantly.
HBO programming is currently distributed in Canada through Bell Media’s Crave, while Rogers licenses Discovery content and Corus carries some Paramount programming. Those multi-year agreements could keep much of the existing Canadian distribution system intact for several years.
Ellison has indicated that Paramount+ and HBO Max could eventually be combined into a single streaming service. But industry experts say Skydance may find it more profitable to continue licensing programming to established Canadian broadcasters rather than consolidate its services in the smaller Canadian market.
Consumers could nevertheless face higher streaming prices. Industry analysts say major streaming platforms have repeatedly raised subscription costs as they seek profitability, while the newly merged company will also have debt associated with the takeover to manage.
The merger could have broader consequences for film production and employment.
As part of a settlement with U.S. states that opposed the transaction, Paramount committed to releasing at least 30 films annually over the next two years. It also agreed to release 32 films annually during the following three years, although only half would have to be produced or co-produced by the combined company.
Some industry advocates remain concerned that consolidation could eventually result in fewer films and greater emphasis on expensive franchise and blockbuster productions at the expense of smaller and independent projects.
There are also concerns about the impact on Canada’s film and television production sector.
Skydance has pledged to increase U.S. film production spending by at least $1.5 billion US over five years, while simultaneously looking for cost savings following the merger. A Los Angeles County report estimated the transaction could lead to approximately 4,500 film and television jobs being lost in Los Angeles over three years.
Canadian industry observers warn that shrinking production budgets and increased competition for projects could also reduce opportunities for Canadian actors, directors and production crews.
The merger faced significant opposition within Hollywood. Earlier this year, thousands of actors, directors, writers and other industry professionals signed an open letter warning that further consolidation could result in fewer jobs and reduced choice for audiences. Signatories included Jane Fonda, Mark Ruffalo, Canadian filmmaker Denis Villeneuve and J.J. Abrams.
Other prominent filmmakers have expressed support for Ellison and the company’s commitment to theatrical releases, including directors James Cameron and Jon M. Chu.
The takeover also places CNN under Skydance’s control, drawing scrutiny over the network’s editorial independence. U.S. President Donald Trump and members of his administration had repeatedly criticized CNN during the takeover process and publicly commented on the prospect of Ellison gaining control of the network.
Ellison has pledged to preserve CNN’s editorial independence. The company has also agreed to establish a News Editorial Independence Board, while Mark Thompson will remain CNN’s editor-in-chief.
With the transaction now complete, the new Skydance controls a vast collection of film studios, television networks, streaming platforms and entertainment franchises, while the longer-term consequences for Canadian consumers and the country’s production industry remain uncertain.
