Paramount closes US$111 billion Warner Bros. deal, takes control of Hogwarts Legacy and Mortal Kombat studios
The teams behind Hogwarts Legacy, Mortal Kombat and Batman: Arkham now sit inside Paramount.
Paramount said it had completed its US$111 billion acquisition of Warner Bros. Discovery, in an announcement dated 6 October 2026. The deal puts Warner Bros. Games, its studios and its publishing operation under the enlarged Skydance-led group, according to the closing report. GameSpot
That games business includes Avalanche Software, the developer of Hogwarts Legacy, and Portkey Games, the publishing label — the brand name used to release games — set up for titles in the Harry Potter world. Hogwarts Legacy has sold more than 30 million copies, which makes it one of the best-selling recent releases in the industry.
It also includes NetherRealm, the Chicago studio behind Mortal Kombat, and Rocksteady, the London studio behind the Batman: Arkham series. Both studios, and the long-running franchises they maintain, are now owned by Skydance.
Games were not mentioned. The closing announcement focused on film output and cost savings, with no reference to video games in the statement described in the report. Skydance said it plans to put a minimum of 30 high-quality films in theatres each year. It is also targeting at least US$6 billion in run-rate synergies — recurring annual savings and efficiencies — within three years.
The plan for games has been set out separately. Skydance has formed Paramount Games Studio by folding together Skydance Interactive and Skydance New Media, its two existing games units. That new studio organisation now sits inside the same corporate group as the former Warner Bros. Games teams.
Two projects led by director Amy Hennig will continue under the Paramount Games Studio banner. They are Marvel 1943: Rise of Hydra, an action game set during the Second World War, and a new Star Wars game made with Lucasfilm. No release dates, prices or platform lists were announced for either title as part of the closing news.
The closing had been trailed in advance. The companies had said the deal forming the new Skydance was set to close on 6 October, and Skydance detailed its incoming leadership team on 5 October 2026. Variety
That team pairs Chairman and Chief Executive David Ellison with Ynon Kreiz as co-chief executive at closing. Kreiz has served as chairman and chief executive of Mattel since 2018, where the brand portfolio includes Barbie, Hot Wheels, Fisher-Price, UNO, American Girl and Thomas & Friends. Skydance
The combined group is expected to serve audiences in more than 200 countries and territories. For players, this means little changes on the surface for now.
No studio closures, job cuts or game cancellations were announced alongside the closing. The new owners have not said how Warner Bros. Games and Paramount Games Studio will work together, or whether publishing labels and release plans will change.
