Hollywood has spent more than a century telling stories about hostile takeovers, last-minute rescues and dramatic reversals. Now the industry is watching a real version play out in its own boardrooms.
A deal valued at roughly $110 billion could bring together Warner Bros. Discovery and Skydance Media, the studio backed by billionaire investor Larry Ellison and run by his son, David Ellison. The agreement, disclosed internally at a company town hall and confirmed by people familiar with the matter, marks one of the largest transactions in the history of the film and television business.
The agreement came after a months-long bidding contest that saw another powerful player step aside. Netflix had earlier reached a deal to buy Warner’s studio and streaming assets, offering about $27.75 per share. But Skydance returned with a higher offer, roughly $31 per share, and pursued a broader purchase covering Warner’s entire business.
According to executives who spoke during the internal meeting, Netflix had the legal option to match the revised offer. It chose not to. That decision cleared the way for Skydance to sign the agreement with Warner.
The numbers involved illustrate the scale of the transaction. The total value of the deal is estimated at about $110 billion when debt is included. Skydance is expected to assume a large portion of Warner’s debt while financing the acquisition through a mixture of loans and equity.
Bank of America Merrill Lynch, Citi and Apollo Global Management are reportedly providing about $54 billion in debt commitments tied to the transaction. Larry Ellison is expected to supply more than $45 billion in equity financing.
For Warner Bros. Discovery, the move represents a major change after years of financial strain. The company has carried tens of billions of dollars in debt since the 2022 merger between WarnerMedia and Discovery. That debt load forced management to make deep spending cuts, cancel projects and reduce staff.
Even with those changes, the company continued to face pressure from declining cable television revenue and rising competition from streaming services.
The proposed takeover would bring together two very different businesses. Warner Bros. Discovery owns a vast collection of entertainment brands, including HBO, CNN, HGTV, DC Studios and a major film studio responsible for franchises such as The Matrix and Fantastic Beasts. Skydance, by contrast, is a younger production company known for films such as Top Gun: Maverick and the Mission: Impossible series.
David Ellison has said publicly that his goal is to increase theatrical output and expand the combined company’s reach in film and streaming. In filings with U.S. regulators, Skydance indicated it wants the merged company to release more than 30 films a year.
Such ambitions reflect the pressures facing Hollywood. Streaming platforms have disrupted traditional television and film distribution, forcing studios to rethink how they produce and release content. The merger would combine Warner’s deep catalog of films and television programs with Skydance’s production pipeline and financial backing.
One possibility frequently discussed inside the industry is a closer link between HBO Max and the streaming service owned by Skydance’s partner studio. Executives have not yet said whether the platforms would merge, remain separate or offer some form of bundle.
The deal also represents a shift in the competitive landscape. For years, Hollywood’s major studios were often described as the “big six.” That number fell after Disney bought most of 20th Century Fox in 2019. If the Warner–Skydance combination is approved, the number of dominant studios could shrink again.
Such consolidation has raised concern among regulators and lawmakers. Officials in the United States have already begun examining the transaction.
California Attorney General Rob Bonta confirmed that his office is reviewing the merger and intends to conduct a thorough investigation. Several U.S. senators have also urged the Justice Department to examine whether the deal could limit competition in film production or streaming distribution.
Industry groups representing movie theaters have voiced similar worries. Cinema United, which represents theater owners, has argued that combining two large studios could reduce the number of films released in theaters each year.
The group warned lawmakers earlier this year that a single studio controlling a large portion of the annual box office could reshape the film release calendar.
Other observers say the outcome is not so simple. Skydance has argued that the combined company could increase the number of movies released annually, which could benefit theater operators that rely on a steady supply of new titles.
Financial risks also loom large. Skydance will inherit billions of dollars in debt tied to Warner Bros. Discovery. The combined company could carry total obligations approaching $80 billion or more depending on final financing terms.
Managing that level of debt while investing in film production and streaming services will likely be one of the first challenges facing the new leadership team.
The political dimension of the transaction has drawn attention as well. Larry Ellison, the Oracle chairman and a major investor behind the deal, has been a donor to political campaigns in the United States. Critics have questioned whether ownership changes could influence editorial independence at Warner’s news division, particularly CNN.
Employees at the network have quietly expressed concern about how new ownership might affect newsroom decisions. The companies involved have not addressed those questions publicly.
For filmmakers and actors, the merger arrives at a moment of uncertainty in the entertainment business. The theatrical market has not fully recovered from the pandemic period, and studios have struggled to balance cinema releases with streaming distribution.
Warner Bros. films still play a major role at the box office. In 2025, movies from the studio accounted for roughly 21 percent of domestic ticket sales. Skydance’s releases have relied heavily on franchise titles, including projects connected to Tom Cruise.
Industry figures say the future of Warner’s production strategy could depend on how the combined company balances large franchise films with original projects.
For now, the deal is far from final. Warner’s board must still give formal approval, and regulators in several jurisdictions will review the transaction before it can close. A shareholder vote and antitrust review could take many months.
Until those steps are complete, the proposed merger remains a plan rather than a finished transaction.
