Two of Hollywood’s five top film studios have officially merged, capping two years of disruption to the world’s traditional media industry in a deal spearheaded by the son of a major Trump ally who also happens to be the world’s eighth-richest man.
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who → merge → ally
Paramount’s buyout of Warner Bros Discovery valued the latter at $159 billion, making it the biggest media deal in history.
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it → value → history
And the creation of the new merged entity, dubbed Skydance, has all the hallmarks of Trump’s America.
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creation → dub → America
Bankrolled by Skydance boss David Ellison’s father – Oracle founder and tech oligarch Larry Ellison – with a little help from private equity and three Middle Eastern sovereign funds, the deal has had its fair share of critics.
But with it now set in stone, David Ellison holds the keys to an entertainment and news business juggernaut, and that could change how you and I watch our favourite shows in the future.
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you → bankroll → future
Given it is one of the biggest disruptors to global media in the 21st century, the marriage of Paramount and Warner Bros has understandably received widespread condemnation for how it will affect the livelihoods of thousands of workers in the entertainment and media industries.
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it → give → industries
More than 1400 members of the entertainment industry, including the likes of actors Javier Bardem and Ben Stiller, signed an open letter this year opposing the deal, arguing it would result in a reduced industry.
Hollywood actor Mark Ruffalo, who starred in HBO show Task last year, has been one of the most outspoken critics, arguing last week that the deal will stifle creativity, weaken free speech and cost jobs.
Coveted prize comes with baggage
David Ellison – the man heading up the combined company – has plans to use technology to cut costs and transform Skydance into a media machine that can go toe to toe with the likes of Netflix and others that turned traditional media on its head.
Netflix almost picked up the Warner Bros film studio and home of “prestige TV” HBO in a bidding war with Ellison earlier this year.
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Netflix → include → Ellison
But Ellison, who had his eyes set on Warner Bros even before he took control of Paramount last year, managed to beat Netflix to the prize with a godfather offer, which does come with some hefty baggage.
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which → have → baggage
Newly minted Skydance now has more than $100 billion in debt to deal with on top of a host of legacy media headaches, which Netflix decided weren’t worth breaking the bank on.
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Netflix → mint → bank
“Congratulations on saying the biggest number, you f---ing morons,” one of HBO’s most famous characters, Logan Roy, told his kids in the smash hit Succession.
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one → say → hit
Ellison now owns the rights to that show, and it looks like his tycoon father didn’t quite have the same advice when it comes to overpaying for a prize simply because you have to have it.
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you → own → it
The Oracle founder personally stumped up $57 billion to guarantee his son’s deal went through.
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deal → stump → billion
What does it mean for Australian consumers?
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it → mean → consumers
While this might all seem like problems for our friends across the Pacific to deal with, it does have local implications.
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it → seem → implications
Australians spend more time watching TV shows and movies on paid streaming services than they do any other way, be that live free-to-air TV, catch-up or on social media, according to the Australian Communications and Media Authority.
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that → spend → Authority
Our culture is increasingly shaped by global, US-dominated programming.
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culture → shape → programming
But more and more, the content that defines “water cooler” conversations is produced and paid for by companies overseas – except for live sport.
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that → define → sport
Most people will have crossed paths with content produced by either of the film studios in the merger, in the past weeks, months or years.
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people → cross → weeks
WBD produced mega hits such as Barbie, One Battle After Another, the Dune series, Sinners and F1.
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WBD → produce → Another
Recent Paramount movies include Mission: Impossible – The Final Reckoning and Gladiator II.
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movies → include → Mission
And most will have seen some of HBO’s famous back catalogue, such asVeep, The Wire and The Sopranos, or ongoing programming like The White Lotus and House of the Dragon.
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most → see → Dragon
Paramount has its own hits, such as Yellowstone, Landman and The Agency.
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Paramount → have → Yellowstone
Many of these productions will end up on a newly merged service, with Skydance planning to combine HBO Max and Paramount+.
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Skydance → end → Max
Under what name is unknown, and we also don’t know what it will cost.
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it → know → what
Part of the rationale for the deal includes the thesis that by bringing HBO Max and Paramount+ together, a combined service with a greater back catalogue and pipeline of programming will be able to compete with Netflix more effectively.
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service → include → Netflix
But for consumers, this will probably eventually mean greater costs, particularly when the company adjusts its price point to reflect what used to be two different products.
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what → mean → point
Skydance also owns news services CBS and CNN and a slew of television stations, including Network 10 locally.
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Skydance → own → Network
The mega deal poses new challenges for the global entertainment industry, politics and for consumers of all that the industry produces.
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industry → pose → that
The company has appointed a new co-CEO, Ynon Kreiz from toy giant Mattel, whose central task will be finding more than $8.5 billion in cost savings over the next three years.
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task → appoint → years
Kreiz cut thousands of jobs during his eight years at Mattel.
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Kreiz → cut → Mattel
David Ellison has sought to sell the deal as a positive for the public, by placing new technology, the sector in which his father made his billions, at the centre of the transformation.
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father → seek → transformation
Expect greater innovation, he says.
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he → expect → innovation
If you’re expecting to see some of HBO’s biggest shows, like Game of Thrones, on free-to-air as part of this deal, don’t hold your breath.
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you → expect → breath
‘Terrific people’ for Trump
Skydance has already made some executive and board decisions, such as appointing Kreiz, ditching the WBD studio heads and appointing former British prime minister Tony Blair as an adviser to its board.
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Skydance → make → board
Larry Ellison has donated hundreds of millions to the Tony Blair institute.
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Ellison → donate → institute
Donald Trump praised both Ellisons after the deal’s closure.
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Trump → praise → closure
“They’re terrific people, and it’s going to be a great company,” the US president said, though the younger Ellison has since sought to distance himself from Trump.
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Ellison → ’re → Trump
“We want to speak to everybody,” Ellison said.
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Ellison → want → everybody
“We do not want to politicise the company.”
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We → want → company
But political interference has become a hallmark of Ellison’s initial takeover of Paramount a year ago.
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interference → become → Paramount
He installed a news chief at CBS, Bari Weiss, who is considered friendly to Trump and Israel.
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who → instal → Trump
…and 7 more, not listed.
The Aporia
