Hollywood
Paramount to shoulder $79bn debt in $110bn Warner Bros deal
Ellison vows no cable sell-offs as studios unite to take on Netflix
LOS ANGELES: In a Hollywood plot twist worthy of its own blockbuster, Paramount is set to carry net debt of about $79 billion after sealing its $110 billion takeover of Warner Bros, creating one of the most formidable entertainment groups on the planet.
The deal, signed on Friday at $31 a share, ends months of bidding drama with Netflix, which ultimately declined to raise its offer. Paramount will also pay a $2.8 billion termination fee owed to Netflix, clearing the decks for the merger, which is expected to close in the third quarter.
At the helm is David Ellison, son of billionaire Larry Ellison, who pitched the transaction as less about scale for scale’s sake and more about rewriting the rules of modern media.
“This is not about consolidation, it’s about reinventing the business,” Ellison told analysts, promising that the combined group would expand its reach while sharpening its storytelling edge.
The new entity will merge Paramount+ and HBO Max into a single streaming platform, instantly creating a service with more than 200 million direct-to-consumer subscribers across over 100 regions. The ambition is clear: build the heft needed to compete with streaming’s dominant force, Netflix.
Ellison confirmed that films will continue to enjoy 45-day theatrical windows before moving to premium video on demand, underscoring his belief that cinema remains the launchpad for enduring franchises.
“Franchises are launched in theatres, period,” he said, drawing a firm line under his commitment to the big screen.
The merger unites two storied studios, Warner Bros. and Paramount Pictures, alongside a powerful roster of television brands. Under one corporate roof will sit CBS, MTV, Comedy Central and BET, together with CNN, HBO, TNT and Food Network.
The intellectual property vault reads like a Hollywood hall of fame: Game of Thrones, Harry Potter, Top Gun, the DC Universe, Mission: Impossible and SpongeBob SquarePants among them. Together, they form one of the deepest catalogues in the industry.
The combined company expects to produce at least 30 theatrical films a year, maintaining both studios rather than folding one into the other.
Despite the hefty debt load, Paramount’s leadership was unequivocal about one point: there are no plans to spin off or sell the cable networks. Chief strategy officer Andy Gordon said the group believes firmly in the assets it is acquiring, while targeting $6 billion in cost savings and a three-times leverage ratio within three years.
That belt-tightening will inevitably raise concerns about jobs, though executives stressed that most savings would not come from production cuts and pledged continued support for HBO’s creative independence.
The transaction is expected to secure European Union approval with only minor concessions, though scrutiny is mounting in the United States. California Attorney General Rob Bonta has signalled a vigorous review, and cinema operators have warned that fewer studios could mean fewer films and potential job losses.
For now, however, the script is set. Paramount is betting big, borrowing big and thinking bigger. If Ellison’s vision holds, the merger could reshape the entertainment landscape. If not, it may prove that in Hollywood, even the grandest productions can run over budget.
Hollywood
Disney sells out ad slots for 98th Oscars broadcast
Strong demand for live events turns the Academy Awards into a global, multi-platform marketing moment
NEW YORK: Hollywood’s biggest night has also become one of advertising’s hottest tickets. Disney has sold out all advertising inventory for the 98th Oscars, underscoring the growing demand from brands eager to ride the cultural wave of major live events.
The sell-out marks the sixth consecutive live tentpole success for Disney Advertising. The streak includes last year’s 97th Oscars, the 59th Annual CMA Awards, and Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest, signalling strong appetite among marketers for moments that bring audiences together in real time.
For advertisers, the Oscars are no longer just a single night of glitz and gold statues. Disney’s “Content Everywhere” strategy has expanded the awards show into a sprawling, multi-platform brand playground spanning linear television, streaming, social media and digital content.
“Live continues to be one of the most powerful ways for brands to connect with engaged audiences at scale, and the Oscars represent the very best of culture, creativity and community,” said Disney Advertising SVP, entertainment and streaming solutions John Campbell. He added that the company has reshaped the show’s commercial potential into a connected experience that stretches well beyond the broadcast.
Brands such as Mazda, Pfizer and Volkswagen of America are tapping into Disney’s wider ecosystem, appearing across original content segments including Know Your Movies on Hulu and Critically Acclaimed on Disney+. Partnerships also extend to social media through TikTok Pulse Premiere and to custom brand storytelling created by Disney CreativeWorks.
The result is what Disney calls the “Oscars Everywhere” approach. Rather than a few high-profile ad breaks, advertisers now find themselves woven through a series of moments before, during and after the ceremony.
These include On The Red Carpet at The Oscars, a live pre-show syndicated across major local markets and streamed nationwide, and the After the Oscars Show, which keeps the conversation going once the final award has been handed out.
This year’s sponsors include Rolex, returning for its ninth year, and Burger King, which joins the Oscars advertiser roster for the first time. Other brands in the mix include Disney Cruise Line, Dunkin’, Eli Lilly and Company, Eucerin, Intuit TurboTax, L’Oréal, McDonald’s, Microsoft, Miebo, Paris Baguette, Peacock, Starbucks, State Farm, Toyota and Verizon.
The 98th Oscars will take place on March 15, 2026, at the Dolby Theatre at Ovation Hollywood. The ceremony will be broadcast live on ABC and streamed on Hulu, reaching audiences in more than 200 territories worldwide.
