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Paramount completed its $111 billion merger with Warner Bros. Discovery today, forming a new company called Skydance. The deal follows a last-ditch effort to block it that was rejected by Supreme Court Justice Elena Kagan. A coalition of free speech and media advocacy groups had urged the judge to reject a settlement, arguing it would leave residents of the suing states with "virtually nothing." However, US District Judge Araceli Martínez-Olguín approved the compromise on September 30, stating it saves time and expense compared to a full trial.

The merger combines two major studios, streaming services Paramount+ and HBO Max, CBS, CNN, live sports like TNT Sports, and extensive brand portfolios. The United States Department of Justice had previously approved the deal in June, despite some internal lawyers leaning toward blocking it. In September, the Federal Communications Commission allowed Paramount to finance the transaction by selling equity stakes to sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar.

To address antitrust concerns regarding news distribution, the settlement requires Skydance to establish an "Editorial Independence Board" for CBS News and CNN. This board’s members will be chosen by Skydance and report to the company’s board of directors. CNN CEO Mark Thompson and CBS News Editor-in-Chief Bari Weiss will keep their roles. Paramount CEO David Ellison reportedly told Trump administration officials he would make significant changes at CNN, a frequent target of the former president’s criticism.

Skydance is expected to carry about $80 billion in debt, according to Reuters. The sovereign wealth funds hold non-voting shares, while the Ellison family and RedBird Capital Partners own 100 percent of the voting shares. A separate lawsuit filed by five consumers seeking review at the US Court of Appeals for the Ninth Circuit was also rejected. Justice Kagan denied an emergency application from those plaintiffs yesterday without providing any comment.