Paramount+ and HBO Max will be combined into one streaming service after the WBD deal closes

Following the surprising news that Netflix has withdrawn its bid to acquire Warner Bros. Discovery (WBD), Paramount Skydance stepped in to buy the company. CEO David Ellison announced Monday during a call with investors that the company plans to combine Paramount+ and HBO Max into one unified platform.

“Our combined company will be home to many of the world’s greatest, most iconic and beloved franchises, from ‘Harry Potter’ to ‘Top Gun,’ ‘Star Trek’ to ‘Looney Tunes,’ and ‘Game of Thrones’ to ‘Yellowstone.’ This represents a tremendous opportunity, and we fully intend to invest in the creative engines of both studios, making them the most sought-after destination for industry-leading creative talent,” Ellison said during the call.

Ellison also reassured investors that HBO’s identity and creative vision as a studio would remain unchanged, saying: “Our view is that HBO should remain HBO.” He also committed to maintaining a strong theatrical slate, pledging to produce 15 films per year for each studio, for a total of at least 30 theatrical releases per year.

This announcement comes on the heels of Paramount’s recent agreement to acquire WBD in a deal valued at $110 billion. The merger will bring together a broad range of film, television and news assets under one corporate entity and is expected to upend the Hollywood landscape as we know it. It also reinforces the consolidation trend seen among other major streaming platforms, such as the combination of Disney+ and Hulu.

With an expected subscriber base of over 200 million, the new streaming service will be positioned as a serious contender among the top streaming giants.

However, the merger also invites close scrutiny by the US Department of Justice over concerns about media concentration and market competition. Last week, California Attorney General Rob Bonta pledged to carefully review the takeover.

Additionally, industry observers warn that the merger would likely lead to significant job cuts, raising employee concerns about layoffs and pay cuts. Concerns have also been raised about editorial independence, particularly in light of the Ellison family’s political ties to Donald Trump and increased scrutiny of newsrooms at CBS and CNN.

Ellison expressed confidence that the deal will move forward smoothly. He described the merger as a “pro-competition, pro-consumer, pro-creativity community,” stressing that the deal “will create a stronger production ecosystem in Hollywood and globally, one that expands consumer choices and opens opportunities for creative talent.”