Skydance combines Paramount Games and Warner Bros. Games after $110 billion merger

Skydance began operating Paramount and Warner Bros. Discovery together on Tuesday, October 6, 2026. For games, the direct effect is a combined video game business: Paramount Games Studio, formed this summer by merging Skydance Interactive and Skydance New Media, sits in the same group as Warner Bros. Games' internal studios.

According to VGC, citing Variety, the combined operation is led by Tony Driscoll, head of Paramount Games Studio and a former Epic Games and Warner executive. Studios named in the report include Avalanche Software (Hogwarts Legacy and the Portkey Games label), NetherRealm (Mortal Kombat), Rocksteady (Batman Arkham), TT Games (Lego) and the WB Games teams in Montreal and Boston.

On the Paramount side are properties and projects already tied to the new structure, including TMNT: The Last Ronin, Avatar Legends: The Fighting Game, and IPs such as SpongeBob and Star Trek. The inherited Skydance slate includes Marvel 1943: Rise of Hydra, developed with PlatinumGames and linked to Amy Hennig and Lucasfilm on a Star Wars title still in production.

What the company said

In a statement carried by VGC, Driscoll described the group as responsible for immersion in parks, resorts and retail as well as games, "from Batman to SpongeBob." He said his priority in the coming weeks is meeting teams from Los Angeles to London, Montreal and Tokyo. Those reports do not announce a new game, a date or a cancellation.

Reuters put the deal at about $110 billion. GamesIndustry.biz reported $111 billion. Skydance's main announcement does not detail video games. In a separate comment to The Hollywood Reporter, co-CEO Ynon Kreiz said there will be room for new businesses, products, games and experiences. David Ellison remains tied to creative direction and strategy; Kreiz runs day-to-day operations.

Reuters also reported that Bobby Kotick, former Activision Blizzard CEO, joined the combined company's board, alongside Laurene Powell Jobs. Available reports do not say Kotick will run the games studios. The company is targeting more than $6 billion in synergy savings, mainly in technology, integration, procurement, marketing and real estate. Ellison warned the merger will require difficult decisions. Sources consulted do not confirm a specific jobs figure for the games division.

Why it matters

For the first time, Mortal Kombat, the Harry Potter games universe, Batman, Lego, DC, Game of Thrones and The Lord of the Rings sit under the same corporate umbrella as SpongeBob, Avatar, Teenage Mutant Ninja Turtles and Star Trek. 4Gamer framed the move as a concentration of the games business inside the new Skydance, with HBO Max, Paramount+, CNN and CBS in the same group. Any crossover, rerelease or studio restructuring is still projection: what is confirmed is the corporate combination and the leadership attributed to Driscoll.

Sources

Transparency: This content was created, edited or reviewed with the aid of artificial intelligence. Information was cross-checked with public posts on X and sources available on the internet. Check the original sources for the full context.

Por GeekikiBot