Sequels and reboots, or a studio brave enough to make the next Sinners? Warner Bros. has a new owner, and the next few years will decide which one we get. We look at what’s at stake, from Burbank to Venice and Cannes.
On October 6, 1927, a Broadway audience watched a film featuring a man singing on screen for the first time. The Warner brothers, Sam, Harry, Albert, and Jack, bet their whole future on sound, and Sam was the strongest advocate. He believed that sound could transform the way audiences experienced films. The Jazz Singer revolutionized cinema overnight and helped save a small, struggling studio that would later create iconic characters like Bogart in a trench coat and the inquisitive rabbit asking ”What’s up, Doc?”.
Exactly ninety-nine years later, Warner Bros. ceased to operate as an independent entity. Two weeks ago, David Ellison’s Paramount completed its acquisition, uniting Hollywood’s two oldest studios under a new name: Skydance. Such a symbolic milestone is rare, making the date seem like a fitting conclusion to a chapter.
Both studios were established by immigrants who started out by selling tickets in darkness. Adolph Zukor, Paramount’s founder, arrived in New York at sixteen from a Hungarian village, carrying a small amount of money sewn into his clothing. The Warners family had Polish roots and opened their first theatre in a steel town in Pennsylvania, using chairs borrowed from the local undertaker.
The new owner, David Ellison, comes from a very different background. As the son of Larry Ellison, founder of Oracle and one of the wealthiest people in the world, he never had to borrow any chair. He took over Paramount last year and outbid Netflix for Warner, leveraging his father’s fortune. Hollywood has largely portrayed him as the antagonist this year, but that portrayal may be premature.
Each business era is shaped by its leading financial backers. In 1966, Gulf and Western, initially a bumper manufacturer from Michigan, bought Paramount. Despite concerns that their bumper focus would hurt the studio, Paramount released The Godfather just six years later. Today, tech firms are the most powerful investors, inevitably bringing their capital to Hollywood. The key question isn’t whether the new owner aligns with Hollywood’s traditions, but what this evolution will ultimately produce.
In the optimistic scenario, Ellison aligns perfectly with his resume. Skydance helped make Top Gun: Maverick a success, reviving cinema attendance after the pandemic, and he has promised to a court that the new company will release at least 30 films in theatres each year. In this scenario, the merged studio now has enough funding to take more risks again. Ryan Coogler can pursue an even more unusual project after Sinners, and the iconic water tower stays put.
The other version feels more restrained and familiar. Ellison now carries a significant debt, which influences film preferences. Debt tends to favour sequels for their predictability and makes the studio cautious about mid-budget originals because profits are uncertain. As a result, the studio becomes increasingly like a vault of familiar titles, endlessly licensed and rebooted.
The implications extend beyond filmmaking. HBO Max and Paramount+ now share an owner, and two apps under one owner tend to become one app that costs more than both did. CNN and CBS News answer to the same board, which is the kind of editorial power whose consequences may only become clear when their independence is tested
In Europe, the change is subtle but tangible. When next year’s Venice and Cannes films seek distributors, one major player will be missing from the bidding process. Audiences probably won’t notice much, but the sellers of those films will feel the impact immediately.
The reality is that no one is yet certain about where we’re headed. However, we do know how this studio’s journey started. Ninety-nine years ago, the Warners took a chance on a small company, and a sound audience were not sure they wanted to experience. The inaugural line of dialogue ever spoken in a feature film came from Al Jolson, and it still feels like a challenge: ‘Wait a minute, wait a minute, you ain’t heard nothin’ yet.’
Sam Warner never heard the crowd that night; he died in Los Angeles the day before the premiere. He bet everything on sound and lost his life before the gamble paid off. The studio he and his brothers saved now belongs to someone else, and the only tribute that would make sense to him is another risk. If Skydance is willing to take it, the next ninety-nine years could be worth watching. If not, we’ve already heard all it had to say.
Hi, I’m Haris. As a student at Bocconi, I’m passionate about the intersection of economics, arts, and politics. I enjoy examining how global changes and specific sectors affect individuals and communities worldwide. Writing helps me challenge narratives, explore complex issues, and participate in meaningful discussions. At Tra i Leoni, I aim to share thoughtful, well-reasoned perspectives with an inquisitive audience.
