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Skydance Closes $111B Warner Bros. Discovery Deal Without Mentioning Video Games
ReSkydance Closes $111B Warner Bros. Discovery Deal Without Mentioning Video Games
Paramount's $111 billion acquisition of Warner Bros. Discovery has closed, creating Skydance, but the company's announcement omitted any reference to video games despite owning major studios like Rocksteady and NetherRealm.
Paramount has completed its $111 billion acquisition of Warner Bros. Discovery, creating a new entertainment giant now operating under the Skydance name. The deal, which closed after a competitive bidding process, gives Skydance control of one of the largest portfolios of film, television, and gaming properties in the industry. Yet the company's official announcement of the closing made no mention of video games, a notable omission given Warner Bros. Discovery's significant investments in interactive entertainment.
Skydance CEO David Ellison, who has described himself as a big gamer, now oversees a gaming division that includes some of the most recognizable studios and franchises in the world. Among the assets are Avalanche Software, the developer behind Hogwarts Legacy, which sold more than 30 million copies in 2023, along with its publishing label Portkey Games. The portfolio also includes NetherRealm Studios, known for Mortal Kombat, and Rocksteady, the studio behind the Batman: Arkham series. TT Games, the Lego developer, and multiple WB Games locations in Boston, Montreal, New York, and San Francisco are now part of the combined company.
The press release announcing the deal's closure instead highlighted Ellison's stated commitment to releasing at least 30 «high-quality» movies in theaters annually and described the new entity as «creative-first, audience-focused, tech-forward, and globally scaled.» It referenced content for people «across every entertainment vertical,» a phrase that could encompass video games, but offered no specifics. Skydance has not yet responded to requests for further information about its gaming strategy.
The silence on gaming echoes a similar situation earlier in the acquisition process. When Netflix was originally the top bidder for Warner Bros. Discovery, the streaming company was also quiet about its plans for video games, saying the category did not factor heavily into its thinking. Netflix ultimately lost the deal to Paramount, which offered more money and a contract to purchase the entire company rather than just parts of it.
Beyond the strategic questions, the announcement included a financial target that could signal difficult changes for employees. Skydance said it plans to achieve at least $6 billion in «run-rate synergies within three years,» a figure that often precedes layoffs and cuts in major mergers. The company stated the savings would «primarily» come from «technology, integration and procurement, marketing and real estate rationalization.» The history of large media and tech combinations suggests workforce reductions are likely; Microsoft cut thousands of jobs after acquiring Activision Blizzard.
Skydance recently launched Paramount Games Studio, which folded in Skydance Interactive and Skydance New Media. Projects already in development at those studios are continuing, including Marvel 1943: Rise of Hydra and a new Star Wars game with Lucasfilm from director Amy Hennig, now under the Paramount Games Studio banner. The company is also producing a Call of Duty movie with Activision, scheduled for release in 2028.
The regulatory path to the deal's approval drew attention due to the Ellison family's connections to the Trump administration. David Ellison is the son of billionaire Oracle founder Larry Ellison, and some industry observers believe the family's dealings with Donald Trump and his team helped smooth the process. Netflix executives also spent time with Trump and his team, and co-CEO Ted Sarandos recently praised Trump for supporting the entertainment industry.
With the acquisition complete, Skydance now owns a vast array of gaming properties and studios, but how it will manage or expand those assets remains unclear. The lack of any gaming mention in the closing announcement has left observers wondering whether the new leadership views interactive entertainment as a core pillar or a secondary concern. For now, the company's official communications offer no answers.
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