CNN and CBS News Unite Under Skydance Following Massive $110bn Merger

Paramount Skydance and Warner Bros Discovery finalised their merger on Tuesday to form Skydance. The $110bn deal brings together two major entertainment giants owning movie studios and theme parks, while placing two of the United States’ most influential news brands, CNN and CBS News, under one corporate roof.

Skydance CEO David Ellison, son of tech tycoon and Donald Trump ally Larry Ellison, appointed Ynon Kreiz as co-CEO. Kreiz previously led Mattel. The merger faced lawsuits from unions and 12 different state attorneys general before being settled after the company agreed to establish an independent editorial board to oversee both news networks amid concerns over skewed coverage.

On Monday, the company announced that Mark Thompson will continue as CNN’s editor-in-chief, while Bari Weiss will remain in her position as editor-in-chief at CBS News, a role she assumed exactly a year prior. Thompson’s retention brought relief to CNN journalists, according to the network's media industry newsletter, Reliable Sources, following widespread concerns about major structural changes under the Ellisons.

Uncertainty still looms over both news divisions as the combined company carries $80bn in debt. Management aims to cut costs, expand its streaming footprint, and produce 30 movies annually, raising fears of layoffs and consolidation. Thompson’s contract is set to expire in the spring, leaving his long-term future uncertain alongside questions of whether CNN and CBS News will ultimately remain separate or merge.

Meanwhile, viewership has declined across CBS News, notably with the news magazine programme 60 Minutes experiencing a 21 percent drop during its season premiere last month, marking a 25-year low according to Nielsen ratings.

The attorneys general lawsuit settlement mandates an independent editorial oversight board for both networks within 180 days. However, press freedom experts like Seth Stern, director of advocacy for the Freedom of the Press Foundation, remain skeptical about the board's ability to maintain editorial independence.

Trading under the ticker symbol SKYD on Wall Street, the newly formed company saw its stock drop 2.5 percent since opening on Tuesday.