David Ellison finally closed the deal. On Tuesday, Paramount completed its $110 billion acquisition of Warner Bros. Discovery, birthing Skydance Corp. The new entity marries two historic Hollywood studios. It unites Paramount+ with HBO Max. And it shoulders nearly $80 billion in debt from the start.

Shares of the combined company began trading Tuesday on the New York Stock Exchange under the ticker SKYD. Former Paramount and Warner Bros. Discovery shares ceased trading. The transaction marks one of the largest media combinations ever. It also caps a year of intense bidding wars, regulatory fights and last-minute legal challenges.

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Now that ambition is a reality.” (Variety)

But history alone won’t pay the bills. Skydance enters the arena with annual revenue approaching $70 billion. Analysts project EBITDA climbing to $16 billion by 2028. Still, the interest payments on that mountain of debt will run several billion dollars a year. Executives have promised more than $6 billion in run-rate synergies within three years. Those savings will come from technology consolidation, marketing efficiencies, procurement and real estate cuts. Labor reductions appear inevitable too.

The original plan, floated earlier this year, called for folding HBO Max and Paramount+ into one service over time. The Verge reported on the anticipated combination, noting how the platforms’ libraries would complement each other. HBO Max brought prestige dramas, blockbuster franchises like “Game of Thrones” and DC titles. Paramount+ offered sports, “Yellowstone,” Nickelodeon kids content and Star Trek series. Together they could challenge Netflix more directly.

Recent signals point to a bundle rather than full merger. Casey Bloys, long-time HBO chief, now serves as co-chair and chief content officer for Skydance’s direct-to-consumer business. He has referenced the successful HBO Max-Disney bundle as a model worth considering. Both brands likely survive. Subscribers may gain access to the full catalog through a single higher-priced plan. Details on pricing, launch timing and exact integration remain undisclosed. Consumers expressed worry about higher bills. A Forrester survey found 56% of current subscribers to either service feared price increases most.

Content output carries firm commitments. Skydance pledged at least 30 theatrical films annually for the first two years after closing, rising to 32 in the next three. A 45-day exclusive theatrical window applies. The company also committed to more than 180 television shows and series per year. Those numbers helped secure regulatory approval. Twelve state attorneys general had sued to block the deal on antitrust grounds. A settlement required separate negotiation of cable network carriage deals and $1.5 billion in new domestic production spending over five years.

Leadership reflects a blend of old and new. Ellison serves as chairman and CEO. Ynon Kreiz, who recently left Mattel, acts as co-CEO focused on operations and integration. James Gunn and Peter Safran stay on at DC Studios. George Cheeks oversees television. Mark Thompson continues running CNN. CBS News leadership holds steady. David Zaslav, former Warner Bros. Discovery chief, departs with a payout near $887 million.

But. The debt load looms large. Interest expenses could top $6 billion next year. Cable networks continue to lose subscribers. Linear TV erosion shows no sign of slowing. Streaming profits remain elusive for most players except Netflix. Skydance must grow its combined subscriber base — currently around 100 million or more across services — while trimming costs. Morgan Stanley analysts called the merged streamers a “streaming powerhouse” with potential to reach 240 million subscribers by 2030 and challenge Disney and Amazon for second place.

Franchises now sit under one roof. “Harry Potter,” “Lord of the Rings,” DC Universe, “Mission: Impossible,” “Top Gun,” “SpongeBob,” “Game of Thrones.” Live sports include CBS Sunday NFL games, March Madness and TNT basketball. News properties CNN and CBS News operate with promises of editorial independence. Yet concentration of so much power raises questions. Antitrust concerns drove the state lawsuits and Writers Guild opposition. Job losses in production could reach thousands, according to a Los Angeles County report.

Ellison built Skydance as a production company two decades ago. He later merged it with Paramount before setting sights on Warner Bros. Discovery. A bidding battle with Netflix ended in Paramount’s favor in February. Regulators in 68 jurisdictions cleared the path, including the DOJ, FCC and European Commission. Saudi, UAE and Qatari sovereign wealth funds helped finance the transaction.

So the hard work starts now. Integration of technology stacks and back-office systems. Rationalization of overlapping marketing spends. Decisions on which shows and films to greenlight under tighter budgets. Preservation of creative cultures at studios with distinct histories. Warner Bros. once stood for glamour and broad appeal. Paramount built strength in television and franchise management.

Executives insist the combination creates a creative powerhouse. “We are creative-first, audience focused, tech-forward, globally scaled,” the company said in its announcement. (PR Newswire) Storytelling anchors the strategy. Yet Wall Street will watch the balance sheet closely. MoffettNathanson forecasts EBITDA rising to $19 billion by 2030. That growth must materialize while debt shrinks.

Recent coverage highlights both optimism and caution. TechCrunch detailed the $110 billion price tag and control of major franchises. Reuters noted the $80 billion debt burden and $6 billion savings target facing Ellison and Kreiz. The Wrap chronicled the twists, including the Netflix bidding war and state attorneys general battle.

Consumers face uncertainty. Will the combined offering cost more? Will favorite shows stay exclusive or move? How quickly will libraries merge? Early indications suggest a phased approach that keeps some brand separation. HBO Max’s prestige positioning and Paramount+’s value bundle with live sports and news could coexist in one app or tightly linked apps.

Hollywood watches too. Talent agents wonder about greenlight processes under new leadership. Independent producers eye the $1.5 billion production commitment. Exhibitors hope the theatrical slate stays robust. Streaming competitors — Netflix, Disney, Amazon — now face a more formidable rival with unmatched IP depth.

Ellison bet big. He prevailed against skepticism and opposition. The company that emerges will test whether scale still matters in an era of tech-driven entertainment. Whether $6 billion in cuts can fund both debt service and quality content. And whether one leader can steer two legacy giants without losing what made them special.

The verdict sits years away. For now the deal is done. Skydance exists. The streaming combination moves forward. Audiences, creators and investors will discover together what that really means.