Paramount Skydance has finalized its $110 billion merger with Warner Bros Discovery, officially forming Skydance. The merger, which closed on Tuesday, combines two major entertainment companies that own movie studios and theme parks, as well as two prominent news brands, CNN and CBS News.
David Ellison, CEO of Skydance and son of tech entrepreneur Larry Ellison, has appointed Ynon Kreiz as co-CEO. Kreiz previously led Mattel. The merger faced legal challenges, including lawsuits from unions and 12 state attorneys general, but was settled after the company agreed to establish an independent editorial board to oversee both news networks, addressing concerns about potential biased coverage.
Mark Thompson will continue as CNN’s editor-in-chief, while Bari Weiss will remain in her role at CBS News. Thompson’s continuation has reportedly eased concerns among CNN journalists regarding potential changes under the new leadership. However, uncertainties remain about the future operations of CNN within Skydance, as Thompson indicated that the specifics of CNN's integration into the new company are still being finalized.
The merger has resulted in significant debt for the combined company, totaling $80 billion, prompting the need for cost-cutting measures and a focus on expanding streaming services, with a commitment to produce 30 movies annually. There are concerns about possible layoffs and consolidation within the news divisions.
Thompson’s position may be temporary, as reports suggest his contract is set to expire in the spring. It is unclear whether CNN and CBS News will remain separate entities or merge in the long term, amid speculation that Weiss could assume additional responsibilities over CNN. Previous concerns from CNN talent, including journalist Anderson Cooper, have been raised regarding Weiss’s potential influence.
Viewership for CBS News has declined, with the news magazine program 60 Minutes experiencing a 21 percent drop in viewership during its season premiere compared to the previous year, marking its lowest viewership for a season premiere in 25 years, according to Nielsen ratings.
The settlement terms from the attorneys general’s lawsuit mandate the establishment of an independent editorial oversight board for both networks, which Skydance is required to form within 180 days. However, press freedom advocates express skepticism about the effectiveness of such oversight in maintaining editorial independence. Seth Stern, director of advocacy for the Freedom of the Press Foundation, noted that the board's formation does not guarantee protection against potential editorial influence.
Historically, similar editorial boards have been established in response to concerns about ownership influence, such as when News Corp acquired Dow Jones in 2007. In that case, a five-person independent committee was appointed but ultimately failed to provide the intended oversight.
In Skydance’s case, the board will consist of five journalists appointed by Ellison, with no requirement for public disclosure of its findings. The terms stipulate that no more than two members can belong to the same political party. Stern criticized this approach, stating that a commitment to bipartisan representation does not necessarily align with the pursuit of truth in journalism.
On Wall Street, Skydance began trading under the ticker symbol SKYD on Tuesday, with the stock experiencing a 2.5 percent decline since its opening.