NEW YORK — Two decades ago, a young entrepreneur named David Ellison launched his entertainment company with a World War I aviation film that featured himself in a leading role and heavy special effects.
The movie crashed and burned at theaters.
Fast-forward twenty years, and that same studio chief who was once dismissed as just another wealthy heir playing in Hollywood is now positioned to control one of the entertainment industry’s biggest names. Ellison’s Skydance Productions, after successfully merging with Paramount, has emerged victorious in the battle to acquire the massive Warner Bros. Discovery.
“It’s only a surprise to those who haven’t been paying attention to the long game,” said Walter Nicoletti, who founded film production company Voce Spettacolo. He pointed to Skydance’s strategy of backing successful films and building partnerships with major industry players. “This is a sort of a silent takeover. Skydance didn’t start as a predator. It started as an essential partner.”
Back in 2006, when David Ellison — son of Oracle Corporation co-founder Larry Ellison — established Skydance at age 23, the company barely registered as a footnote in an industry accustomed to wealthy outsiders attempting to break into Hollywood’s inner circle.
The company’s first major release, “Flyboys,” failed to make any significant impact on the industry.
Critics savaged the film. The Seattle Times called it “cloyingly formulaic,” while The Washington Post dismissed it as an “inflated wannabe epic.” The Atlanta Journal-Constitution wrote “It’s hard not to giggle.”
Renowned critic Richard Roeper joined the chorus of negative reviews and questioned the filmmakers’ judgment.
“Why make such a corny and incredibly predictable film?” he asked in his review.
Despite the setback, Ellison persevered. Over the following years, while more failures occurred, he gradually accumulated victories as well. He formed alliances with entertainment giants like Paramount, Netflix and Apple, producing a series of successful films that generated hundreds of millions in revenue. He attracted top talent and significant investment. His studio even achieved the rare milestone of crossing $1 billion in earnings with 2022’s massive hit “Top Gun: Maverick,” starring his company’s most dependable performer, Tom Cruise.
Jason Squire, a former studio executive and emeritus professor at the University of Southern California who hosts “The Movie Business Podcast,” opposes the deal that positions Skydance to control Warner Bros., believing such consolidation reduces competition and damages the industry. However, he acknowledges his amazement at Ellison’s transformation from someone who was “not high on the radar” in Hollywood to reaching the industry’s summit.
“One of the traditions of entering the movie business is serious wealth, or access to serious wealth. But once you get a foothold, you have to demonstrate that wealth — by buying things, acquiring projects,” Squire explained. “They became a player.”
While money alone didn’t guarantee Ellison’s success, Squire noted, it certainly provided crucial assistance.
“He became a member at the table when these partnerships and the infusion of dollars really set him up on a really strong trajectory,” he said. “It’s quite amazing.”
Eventually, the “Flyboys” disaster faded from people’s memories regarding Skydance. Despite some setbacks, including a failed “Terminator” franchise reboot, a series of “Mission: Impossible” movies consistently showcased Cruise and drew audiences to theaters. Successful projects like “Grace and Frankie” on Netflix provided the company access to streaming television.
A series of victories led to speculation about which major corporation might acquire Skydance.
Instead, Skydance became the acquirer.
Following years of collaboration with Paramount, the companies combined last year, and subsequently, Ellison embarked on an aggressive acquisition campaign, announcing deals ranging from Ultimate Fighting Championship streaming rights to an agreement with the “Stranger Things” creators, whom he recruited away from Netflix.
Meanwhile, although the much larger Netflix appeared likely to acquire Warner Bros., Ellison’s Skydance persistently pursued its competing bid. On Thursday, Skydance prevailed. Netflix withdrew its offer, leaving regulatory approval as the only remaining obstacle for Skydance.
“This was absolutely a meteoric rise. Two decades from its formation to its current position to become one of the most powerful media companies in the world is nothing less than incredible,” said Tre Lovell, a Los Angeles media law and entertainment attorney. “What Skydance has done over the past two decades has not been accomplished by any other media company in history.”
The Paramount merger brought Skydance control of MTV, Comedy Central, Nickelodeon and numerous other networks, including flagship CBS, where the leadership change has created upheaval in the news department. Should the Warner transaction complete, Ellison would oversee a vast media empire encompassing HBO, HGTV, the Food Network, and significant news expansion through CNN — a development that concerns some employees given the family’s perceived alliance with President Donald Trump.
The deal would also provide Paramount, which has struggled recently in theaters, with a studio fresh off an exceptional year. Warner Bros. earned 30 Oscar nominations compared to Paramount’s zero, and captured 21% of domestic box office revenue in 2025. Paramount’s market share stood at merely 6%.
All of this could soon belong to Ellison. The contrast over two decades is remarkable.
The “Flyboys” failure left Ellison so devastated that he once revealed it caused atrial fibrillation requiring hospitalization. However, for someone from a family so wealthy that his father owns most of a Hawaiian island, and possessing what GQ magazine described as “the golden glow of the genetically sparkling,” his dramatic turnaround may not be entirely unexpected. In this comeback tale, Ellison seems perfectly cast for the role.
Ellison has achieved his greatest theatrical successes with recognizable properties from established franchises including “Transformers,” “Scream,” “Sonic the Hedgehog,” and “Paw Patrol.” His personal story of emerging as the unexpected winner may resonate with equally familiar themes.
“Hollywood has seen David-versus-Goliath moments before,” said Vikrant Mathur, co-founder of streaming company Future Today.
