Paramount Warner Bros games merger: Tony Driscoll to run the studios behind Hogwarts Legacy and Mortal Kombat

What the Paramount Warner Bros games merger changes

The Paramount Warner Bros games merger is now real. When the roughly $110bn merger of the two companies closed on Tuesday, October 6, 2026, their video game divisions were combined under one leader, Tony Driscoll. VGC reported the news on October 7, citing Variety, and Shack News confirmed that the merged unit sits inside what is now called Skydance.

Driscoll previously ran Paramount Games Studio, which the company formed this summer, and has held senior roles at Epic Games and Warner Bros. He now oversees a lineup that spans Mortal Kombat, Hogwarts Legacy, Batman, Lego and SpongeBob. The change is organisational. No release date, cancellation or studio closure came with it.

That distinction matters for anyone worried about their favourite series. As of October 8, the public record is a reporting line and a memo, not a strategy.

Which studios and franchises are now under one roof

VGC lists the Paramount side first: Paramount Games Studio, with TMNT: The Last Ronin, Avatar Legends: The Fighting Game, SpongeBob and Star Trek projects, plus Skydance's lineup including the upcoming Marvel 1943: Rise of Hydra. On the Warner side it names Avalanche Software (Hogwarts Legacy), NetherRealm Studios (Mortal Kombat), Rocksteady Studios (Batman), TT Games (Lego) and the WB Games teams in Montreal and Boston.

The wider merger also brings together CNN, HBO, DC Studios and franchises such as Harry Potter, Game of Thrones, The Lord of the Rings and Batman, according to VGC. That is why the games division is being run as a single unit: the intellectual property now sits in one parent company, and the games arm is the part that turns it into interactive products.

TheWrap gave scale to the Warner portfolio in March. It reported that the Lego, Mortal Kombat and Batman: Arkham franchises have sold roughly 200 million, 100 million and 70 million units, and that Hogwarts Legacy sold over 40 million copies. Those are the assets the new boss inherits.

Who is Tony Driscoll and what did he say

Driscoll's memo is the only primary signal so far. VGC and Shack News both quote the same line: 'We immerse our players in action, adventure, combat, competition and creativity, from "Batman" to "SpongeBob."' Shack News also quotes a sentence about the wider company, 'We immerse our guests in theme parks, resorts, restaurants, retail, studio tours and more,' which shows how broadly the new owner defines games and experiences.

VGC also quotes Driscoll on his first priority: 'my first priority in the coming weeks is meeting as many of you as I can from LA to London, Montreal to Tokyo, and beyond.' That points to integration first. Nothing in the memo, as reported, names a game, a studio or a target.

Variety obtained the memo, and its reporting on the leadership structure is the source for both outlets. We could not open Variety's page this run, so we rely on VGC and Shack News for what it says.

Why the cost question will not go away

The reason this story draws attention is money. TheWrap reported on March 19 that David Ellison was eyeing at least $6 billion in cuts to make the Warner Bros. Discovery acquisition work, and that Paramount would carry about $79 billion in net debt on closing. It also reported that Warner Bros. Discovery's games revenue fell 34% in its latest quarter, which the company attributed to 'higher carryover' from the prior year, and that WB Games lost over $300 million in 2024 after several titles underperformed.

Against that, Paramount's own games business is small. TheWrap noted that Skydance's interactive unit was under 5% of company revenue in the first nine months of 2024, and that Paramount does not break out gaming revenue.

Those figures are from before the deal closed, and they describe pressure, not decisions. Nothing we opened this run says any WB Games studio will close or be sold.

What analysts expected for Warner Bros. Games

The analysts TheWrap quoted in March were cautious. NYU's Joost Van Dreunen said acquirers often promise new projects after a merger but that higher-risk work tends to be shelved, adding 'And that second part is never true.' Ampere Analysis's Piers Harding Rolls said 'Whether Paramount has the appetite to expand rapidly to become a major games publisher remains to be seen.'

Others expected targeted moves rather than a break-up. Qualia Legacy Advisors' Aaron Meyerson said 'If there are divestitures, they would likely be piecemeal rather than a full carve-out of WB Games.' Argonaut Games' Michael Arkin expected Paramount to keep the PC and console strategy, saying 'Where you make money is with PC/console and AAA games.' Wedbush's Michael Pachter viewed WB Games as additive to Paramount's gaming business.

TheWrap also listed possible buyers for pieces of the business, including EA, Take-Two, KKR, EQT, Savvy Games Group and Tencent, and said analysts expect any sale to involve development capacity rather than franchise IP. That is speculation from March, not a plan.

What it means for players of Mortal Kombat, Hogwarts Legacy and Batman games

For players, nothing changes today. No game has been delayed, cancelled or renamed in the reporting we opened, and live games continue under their studios. The practical effects, if any, will arrive over months, through release schedules, staffing news and publishing decisions.

There are two signals worth watching. The first is whether the combined division announces a slate under Driscoll that spans both legacies, for example a Paramount IP game built by a Warner studio. The second is staffing: Warner Bros. Games Montréal had already laid off a 'limited number' of staff before the deal, according to TheWrap, so further cuts would show up first in studio-level news.

Until then, treat rumours about studio sales or closures as unconfirmed. The only confirmed facts are the close of the merger, the leadership of the division and the list of studios inside it.

What to watch next

Driscoll said he will spend the coming weeks visiting teams, so the next real information is likely to be an organisation chart, a studio statement or a release-window update. Marvel 1943: Rise of Hydra, the upcoming Skydance title VGC names, is one title to watch for how the combined division handles a release.

We will update this report if Paramount or Skydance publishes a games strategy, confirms studio changes or names a head for the combined publishing label. If you follow one franchise, the quickest check is the studio's own channels, which tend to confirm closures or sales before the trade press does.