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Skydance Is Merging Paramount And Warner Bros.’ Game Studios Into One Unit

October 7, 2026
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With Paramount’s $111 billion acquisition of Warner Bros. Discovery in the bag, details on what this merger means for the Warner Bros. game division have finally been revealed. Warner Bros. Interactive will merge with the newly formed Paramount Games Studio, and it’ll oversee projects based on Skydance’s rich–and newly acquired-library of IP. That lineup includes Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, and Star Trek–and that’s not even mentioning the treasure trove of DC Comics IP that the company now owns.

The new division will be overseen by Tony Driscoll, president of games and experiences at Skydance, and one of the executives leading corporate strategy and development at the company. Driscoll had previously described video games as a “core pillar” of entertainment, alongside film and TV.

SpongeBob Mortal Kombat crossover when?

“We’re investing in our future growth engines alongside our core ambitions in TV, film and direct-to-consumer: Games, experiences, consumer products, and publishing,” Gordon wrote in a staff memo (via Variety). “These are core pillars of our strategy to build engagement and fandom in both the physical and digital worlds. We want to meet consumers where they watch, play, and engage.”

It’s still unclear what the future plans are for the growing Skydance gaming division, or how hard it’ll be hit by looming layoffs. This branch of Skydance will now be the home to some big WBI developers like Avalanche Software (Hogwarts Legacy), NetherRealm Studios (Mortal Kombat), Rocksteady Studios (Batman: Arkham Series and one Suicide Squad game I don’t want to talk about), and TT Games (Various Lego games).

Former Activision CEO Bobby Kotick has also joined the board of directors, and Skydance is also producing the Call of Duty movie with Activision, which is scheduled to hit theaters in 2028.

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