Paramount completed its takeover of Warner Bros. Discovery on Tuesday, bringing two major film studios, a vast collection of television networks, two large streaming services and multiple news organizations together under one corporate roof.

The combined company will be known as Skydance, adopting the name of the studio David Ellison founded 20 years ago. Ellison will lead the new operation alongside co-CEO Ynon Kreiz.

The deal creates a significantly larger entertainment player as Ellison seeks to compete with Disney and Netflix, as well as technology companies Amazon, Apple and Google. Its portfolio spans film, television, streaming, news, original programming, live sports rights and established franchises.

Closing the takeover, however, is only the beginning. The new leadership team must now integrate two sprawling businesses, address more than $80 billion in debt and pursue Ellison’s plan to turn Skydance into a hybrid technology and entertainment company.

Ellison Calls It a “Historic Day”

In a statement marking the completion of the transaction, Ellison said the company’s original ambition was to unite the two studios and create a stronger competitor capable of reaching viewers across genres and platforms.

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said. “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.”

Ellison also thanked the employees, creative talent, production teams, advisers and partners involved in bringing the two companies together.

“Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders,” he said. “We couldn’t be more excited to get to work.”

Gerry Cardinale, the founder and managing partner of RedBird Capital and a director on the Skydance board, described the completion of the deal as a pivotal event for the wider business.

“This is a defining moment for the industry,” Cardinale said. He pointed to Paramount and Warner Bros. Discovery’s collection of franchises, premium original programming and live sports rights as the foundation on which the new company plans to build.

Cardinale said RedBird’s “owner-operator model” would be applied to that portfolio as the media industry undergoes what he called “transformational change.” He also backed Ellison, Kreiz and the wider Skydance leadership team to guide the company through that shift.

“We’re proud to back them as we build a stronger Hollywood, expand opportunities for talent, and create long-term value for our shareholders,” Cardinale said.

What Happens Next?

The immediate priority is bringing the two workforces together. A staff meeting was scheduled for the Warner lot on Tuesday, with a meeting involving the press also set to take place.

Another public milestone is expected in the coming days. Ellison and Kreiz are due to ring the bell at the New York Stock Exchange, where shares in the newly combined Skydance will trade.

Beyond those events, the scale of the integration will define the company’s next phase. Ellison and Kreiz must combine the operations of two entertainment behemoths while managing the debt load and reshaping the enlarged business around the technology-entertainment strategy outlined for Skydance.