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

After the surprising news that Netflix had withdrawn its bid to acquire Warner Bros.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

“Our combined company will be home to many of the world’s biggest, most recognizable and beloved franchises, from ‘Harry Potter’ to ‘Top Gun,’ ‘Star Trek’ to ‘Looney Tunes,’ ‘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 the industry’s top creative talent,” Ellison said during the call.

Ellison also assured investors that HBO’s identity and creative vision as a studio will remain unchanged, stating, “Our view is that HBO should remain HBO.” It also committed to maintaining a strong theatrical slate, committing 15 films per year, per studio, for a total of at least 30 annual theatrical releases.

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

With a projected subscriber base of over 200 million, the new streaming service will position itself as a serious contender among the top streaming giants.

However, the merger also requires close scrutiny by the US Department of Justice over concerns about media concentration and market competition. last week, California Attorney General Rob Bonda promised to strictly review the takeover.

In addition, industry observers warn that the merger is likely to lead to significant job cuts, intensifying employee concerns for layoffs and wage cuts. Concerns have also been raised about editorial independence, particularly in light of the Ellison family’s political connections to Donald Trump and increasing scrutiny of newsrooms CBS and CNN.

Ellison expressed confidence that the transaction would proceed smoothly. He described the merger as “pro-competitive, pro-consumer and pro-creative,” stressing that the transaction will “create a stronger Hollywood production ecosystem and a global ecosystem that expands consumer choices and unlocks opportunities for creative talent,” he concluded.