Paramount and Warner Bros merge into one Hollywood giant

Paramount on Tuesday finalized its takeover of Warner Bros. Discovery , completing a hostile acquisition that was months in the making and almost faltered at several hurdles .

The takeover cost a total of around $81 billion (roughly €72 billion), or almost $111 billion including the Warner Bros. debts passed on as part of the deal.

The merger brings together two of the oldest US filmmaking studios and will form a new giant called Skydance Corporation.

The new name Skydance hails from billionaire investor David Ellison, who first bought out Paramount and its subsidiaries and then moved on to target the much larger fish that is Warner Bros.

The bid faced stiff competition in a bidding war with Netflix , and later scrutiny from US regulators and politicians, but ultimately went through.

"Today is a historic day, not just for Skydance but for our entire industry," said Ellison, whose family has ties to US President Donald Trump.

Skydance shares began trading on the New York Stock Exchange on Tuesday under the ticker SKYD, while Warner Bros. Discovery shareholders will receive about $31 per share.

The deal closed less than a week after a federal judge in California approved a settlement between Paramount and 12 US states that had sued to block the transaction on antitrust grounds.