LOS ANGELES - Paramount completed its $81 billion takeover of Warner Bros. Discovery on Tuesday, bringing two of Hollywood's oldest studios, two major streaming services and the news organizations CBS News and CNN under a single company called Skydance.

The purchase is valued at nearly $111 billion when debt is included, making it one of the largest combinations in media history. Warner Bros. Discovery shareholders received about $31.02 per share in cash, and the former company's stock stopped trading on Nasdaq. Shares of the combined business began trading on the New York Stock Exchange under the symbol SKYD.

David Ellison will lead the company with co-CEO Ynon Kreiz. The portfolio includes Paramount Pictures, Warner Bros., HBO, CBS, CNN, Nickelodeon, DC Studios, CBS Sports and TNT Sports, along with the Paramount+ and HBO Max streaming services. Skydance says its platforms collectively reach more than 200 million streaming subscribers.

The transaction followed a yearlong contest for Warner Bros. Discovery. Warner initially favored a studio and streaming agreement with Netflix, while Paramount pursued a hostile counterbid before raising its offer and reaching a negotiated agreement in February.

Skydance said the combined company will release at least 30 theatrical films annually and produce more than 180 television shows and series. Reuters reported that management plans to combine HBO Max and Paramount+ into one service and spend at least $30 billion a year on content.

The scale creates immediate financial pressure. Reuters said the company is expected to carry about $80 billion in debt. Management is targeting at least $6 billion in annual cost savings within three years, including consolidation of technology and cloud contracts, although employees and unions expect the integration to affect jobs.

Federal and state regulators examined whether the merger would reduce competition. The Justice Department said an eight-month investigation found the transaction unlikely to harm consumers in streaming, linear television or film production and distribution. The department argued that the combined company could compete more effectively with larger streaming and technology groups.

A coalition of state attorneys general challenged that conclusion before reaching a court-enforceable settlement. The agreement includes additional commitments for domestic film production and a fund for workers affected by the merger. Thousands of actors, writers and directors had also opposed the deal, warning that concentration could mean fewer jobs and less choice.

Scale is not the same as creative strength

The industrial logic is clear. Traditional studios are competing not only with one another but with Netflix, Amazon, Apple, YouTube and an expanding universe of independent creators. Paramount and Warner each owned valuable libraries and brands but faced the high fixed costs of global streaming. Combining them can spread technology, marketing and production expenses across a larger audience.

But the same scale that may produce a stronger American competitor can also weaken the market around it. When two major employers become one, writers, technicians and independent producers have fewer buyers for their work. When streaming services merge, consumers may face a larger catalog but one less company competing on price and quality.

The debt load sharpens that danger. Executives can promise that savings will come mainly from technology and other non-labor expenses, yet $6 billion cannot be removed painlessly from organizations this large. Pressure to service debt may encourage layoffs, canceled projects and dependence on familiar franchises instead of risky original work.

Ownership of both CBS News and CNN deserves separate scrutiny. There is no evidence that the merger itself dictates their journalism, and corporate ownership does not automatically erase editorial independence. Still, two nationally important newsrooms now answer ultimately to the same leadership. Transparent standards, separate editorial chains of command and public disclosure of political conflicts will be essential.

The Justice Department's approval should not end oversight. Competition policy is not a one-time prediction made before a deal closes. Regulators can monitor pricing, licensing, employment, theatrical output and whether Skydance uses its library to disadvantage rival distributors. The company's own public commitments create benchmarks against which it can be judged.

American entertainment has global influence because it combines commercial ambition with a competitive marketplace for ideas. Skydance now has extraordinary assets and an opportunity to build a serious rival to the largest technology platforms. Its success should be measured not only by subscriber totals and cost savings, but by whether creators have room to work, audiences retain real choice and newsrooms remain free to report without fear or favor.