Skydance bundles Warner Bros. Interactive and Paramount Games Studio after $111 billion deal

The new unit is linked in the sources to major franchises such as Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, Star Trek and DC Comics. Tony Driscoll is named as the executive set to lead the division.

The information provided does leave open exactly how the new structure is set up legally. It is also unclear which studios, licenses and possible staffing changes will ultimately fall under the new games division.

What happened

Gamespot reports that Paramount has completed its $111 billion acquisition of Warner Bros. Discovery and that Skydance has since reorganized its games business. In that context, Warner Bros. Interactive and Paramount Games Studio would have been merged into one games unit. The report places that move directly after the October 6, 2026 deal, which is described in multiple external context sources as closed.

According to the same report, the division will oversee projects tied to several well-known IPs, including Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, Star Trek and DC Comics. Tony Driscoll is named in the publication as the person in charge of the new branch. The supplied material also links him to the description that video games are a “core pillar” alongside film and TV, but a formal title for the new division is not fully spelled out.

Variety points to an internal memo saying the company is investing in games, experiences, consumer products and publishing as part of its growth strategy. That memo fits the broader integration of the entertainment businesses after the acquisition, but the sources do not specify whether the games unit is a completely new legal entity or mainly an internal reshuffle of existing studios and labels. The text also says the division’s future is not yet fully clear and that layoffs have not been ruled out, without giving a definitive confirmation.

Background

The reporting fits into the broader integration of Skydance and Paramount’s games activities after the Warner Bros. Discovery acquisition. The sources also mention studios such as Avalanche Software, NetherRealm Studios and Rocksteady Studios, but their exact role within the new structure is not fully explained. It therefore remains unclear whether these studios fall directly under the new division or are only mentioned as part of the wider games portfolio.

The franchises named in the reports come from different entertainment brands, but the supplied information does not make clear which rights are definitively owned, which are licensed, and which IPs are only being referenced as part of the new division. The legal form of the merger is also not fully specified in the sources. The external context does include a Paramount statement about the planned acquisition of Warner Bros. Discovery and multiple articles describing the deal as closed, but the exact corporate structure of the games division is never fully broken down.

Tony Driscoll emerges in the reporting as the face of the new games organization, but the supplied material does not provide a formal appointment notice or org chart. The passage about possible layoffs is also cautiously worded: the sources only say the division’s future is still uncertain and that staff reductions have not been ruled out. The core of the news is therefore the consolidation of the games business under Skydance, tied to a large slate of recognizable IP and an investment strategy that also includes publishing and consumer products.

Related GAME-scanner articles

• Skydance completes Warner Bros. Discovery acquisition for $111 billion and does not mention games
• Skydance Corp. claims $6 billion in synergies after Paramount-Warner Bros. merger on October 6, 2026

Sources

• Gamespot: report on the merger of Warner Bros. Interactive and Paramount Games Studio.
• Variety: reference to an internal memo about investments in games, experiences, consumer products and publishing.