Paramount and Warner Bros. Discovery finalize a massive $110 billion merger.

Paramount has finalized its $110 billion acquisition of Warner Bros. Discovery, resulting in the formation of a new entity called Skydance. This merger brings together Paramount and WBD’s film studios, as well as major networks and brands like HBO, CBS News, and CNN, under a single umbrella.

The journey to this media megamerger has been challenging for Paramount, which reached an agreement in February after a protracted competition with Netflix for WBD. Since then, the company has faced backlash from lawmakers and Hollywood talent regarding the potential downsides of media consolidation.

Last month, Paramount overcame its final significant obstacle by settling with 12 states that had filed lawsuits to block the merger due to antitrust issues. As part of the settlement, Skydance is required to release a minimum number of theatrical films over the next five years, starting with 30 in the first two years. Additionally, it must invest at least $300 million more in production in the U.S. compared to the previous combined spending of the two companies.

David Ellison will head Skydance, working alongside Ynon Kreiz, the former chairman and CEO of Mattel.

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison stated in the announcement. “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.”