Paramount on Tuesday completed its takeover of Warner Bros Discovery, uniting two of Hollywood's most storied studios in a media empire spanning television, news and cinema under the control of David Ellison. The combined company, renamed Skydance, brings together Paramount Pictures and Warner Bros Pictures, the CBS News and CNN networks, and the HBO and CBS television brands. Ellison plans to eventually merge the Paramount+ and HBO Max streaming services. "Today is a historic day, not just for Skydance but for our entire industry," said Ellison. His ultra-wealthy family's ties to US President Donald Trump have raised concerns among critics that the new Hollywood giant will toe the White House line in its news coverage. "It's going to be a great company," Trump told reporters on Tuesday as he left the White House. The new company faces considerable challenges, with the entertainment industry in flux as streaming services and YouTube draw viewers away from traditional TV and movie theatre audiences dwindle. Skydance shares ended their first day trading down 2.7 percent on the New York Stock Exchange under the ticker "SKYD." The deal closed less than a week after a federal judge in California approved a settlement between Paramount and 12 US states that had sued to block the transaction on antitrust grounds. Paramount won a bidding war against Netflix in February for Warner Bros Discovery, and the Trump administration approved the deal, one of the largest-ever media mergers, in June without demanding a change to its business. Skydance, which will have nearly US$70 billion in annual revenue, said it is targeting more than US$6 billion in cost savings within three years. Ellison will serve as chairman and CEO, with former Mattel chief Ynon Kreiz as co-CEO in charge of day-to-day operations and integrating the two businesses. The deal was backed by US$47 billion in new equity led by the Ellison family, private equity firm RedBird Capital and the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. David Ellison's father, billionaire Oracle founder Larry Ellison, provided major funding and a guarantee to lenders backing the deal. The Ellison family holds the largest equity stake in Skydance. Opponents in the movie industry said the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year, while news media groups feared CNN's independence could be compromised. The settlement with the states includes several safeguards on these issues, including a board meant to protect CNN's editorial independence. (AFP) Edited by Cecil Wong

US stocks ended higher on Tuesday as crude prices steadied and US Treasury yields eased, offering some reprieve from concerns that have preoccupied investors in recent weeks, and allowing markets to turn their attention to the approaching third-quarter reporting season. The broad rally pushed the S&P 500 and the Nasdaq to all-time closing highs. The blue-chip Dow remains just over 5 percent shy of its record closing level reached on August 5. When oil prices stabilise or move lower, "that causes yields to move down because there's less anxiety about energy-driven inflation, which in turn is helping lift stocks higher," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "This has been the narrative of the market for the last couple of weeks." Six of the "Magnificent Seven" group of AI-linked mega-cap firms advanced, bolstering gains, while small-caps lagged their larger-cap counterparts. The AI trade is very much alive, with the Philadelphia SE Semiconductor Index gaining ground. Expenditures on AI-related infrastructure were reflected in international trade data, which showed imports of capital goods rose by 4.4 percent in August. The Commerce Department's report showed the US trade deficit grew by 13.7 percent as imports rose to a record high. On monthly and annual bases, imports have grown by 4.3 percent and 28.4 percent, respectively, reflecting robust domestic demand that could exacerbate inflation pressures, particularly amid war-related supply constraints. Even so, financial markets are currently pricing in a diminishing probability of 19.4 percent that the US Federal Reserve will implement its second consecutive rate hike at this month's monetary policy meeting, down from 50.9 percent a week ago, according to CME's FedWatch tool. Fed rate hike bets have been responsive to oil prices, which have surged amid the Iran war, threatening to morph into broader price pressures. But supply worries eased after the Group of Seven countries reached an agreement to release emergency diesel and crude stockpiles, helping to stabilise front-month WTI and Brent crude futures. "We don't expect (the Fed) to do anything at the next meeting," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "But I think they're in a gradual hiking cycle." "High oil prices have hit a broad range of consumers," Ghriskey added. "That's one of the reasons for the recent Fed hike." The S&P 500 rose 0.6 percent, to 7,818, the Dow rose 0.5 percent, to 51,521, while the Nasdaq rose 0.5 percent, to 27,599. Third-quarter earnings season kicks off next week, with a number of high-profile financial firms expected to report next Tuesday. (Reuters) Edited by Cecil Wong