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

Following the surprising news that Netflix had withdrawn its bid to acquire Warner Bros. Discovery (WBD), Paramount Skydance stepped in to purchase 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 greatest, most recognizable and beloved franchises in the world, 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 leading creative talent,” Ellison said during the call.

Ellison also reassured investors that HBO’s identity and creative vision as a studio would remain unchanged, stating, “Our viewpoint is HBO should stay HBO.” He also committed to maintaining a robust theatrical slate, pledging 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 would bring together a vast array of film, TV, and news assets under one corporate entity and is expected to upend the Hollywood landscape as we know it. It also furthers the trend of consolidation 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 be positioned as a serious contender among the top streaming giants.

However, the merger also invites close scrutiny from the U.S. Department of Justice over concerns about media concentration and market competition. Last week, California Attorney General Rob Bonta vowed to rigorously review the acquisition. 

Additionally, industry observers warn that the merger is likely to result in significant job cuts, heightening employee anxieties over layoffs and wage reductions. Concerns have also been raised over editorial independence, particularly in light of the Ellison family’s political connections to Donald Trump and increasing scrutiny of newsrooms at CBS and CNN.

Ellison voiced confidence that the transaction would move forward smoothly. He described the merger as “pro-competition, pro-consumer, and pro-creative community,” emphasizing the transaction will “create a stronger Hollywood and global production ecosystem, one that expands consumer choice and unlocks opportunities for creative talent,” he concluded.