Skydance co-CEO David Ellison is projecting sweeping ambitions for the newly combined entertainment company following Paramount’s acquisition of Warner Bros. Discovery. Speaking with CNBC on Thursday, Ellison said the expanded business is “positioned to win in every single vertical that we operate in.”
The transaction officially closed on Tuesday, creating a company with major assets across film, television and streaming. Its portfolio includes the Paramount and Warner Bros. studios, the CBS broadcast network, Paramount+ and HBO Max.
Skydance also controls a broad pay TV collection that includes CNN, TNT, MTV and BET. That reach gives Ellison and co-CEO Ynon Kreiz a large collection of entertainment brands to manage as audiences and viewing habits continue shifting.
Ellison and Kreiz intend to divide their executive responsibilities. Ellison will concentrate on creative vision, technological innovations and long range strategy, while Kreiz will lead the integration and oversee daily management and operations.
Kreiz framed the combination as a rare opening to create a global entertainment enterprise built around both creative work and technology. “We have a unique opportunity to build the next generation media and entertainment global company that is powered by creativity and technology,” he said.
According to Kreiz, the company possesses the assets, employees and capabilities needed to pursue that goal. He also said the industry has reached an inflection point as reaching consumers and gathering fans becomes increasingly difficult.
The two executives bring different forms of experience to the sprawling operation. Kreiz is a veteran with 30 years in the media business and a reputation as a turnaround executive, while Ellison has spent more than 15 years working as a producer on sets.
Ellison, who also serves as Skydance chairman, has said he wants the company to become a creative hub for filmmakers. Delivering on that vision will require managing an unusually demanding theatrical release schedule tied to the acquisition.
A group of state attorneys general sued to stop the transaction over antitrust concerns. Under a settlement, Skydance agreed to release at least 30 films in theaters annually during 2027 and 2028.
The company also agreed to release at least 32 films annually in 2028, 2030 and 2031. Rentrak data shows that the combined company currently has 35 films scheduled to arrive next year.
Streaming integration is another major piece of the plan. Ellison has said he intends to merge Paramount+ and HBO Max, bringing the two services together as management works through the broader combination of the businesses.
The financial arithmetic will be demanding. Skydance must manage $80 billion in debt resulting from the merger, while pursuing a previously announced target of $6 billion in cost savings over the next three years.
Ellison expressed confidence that management understands where those reductions can be found. “There are absolutely operational efficiencies,” he said. “We’ve looked at this deal for over a year. We know where every single dollar is.”
Kreiz said Thursday that savings “will come from technology, marketing consolidation, real estate optimization, and some labor.” Skydance has already unified advertising sales across its platforms and is working to unify the underlying technology systems.
The focus on labor has fueled fears of layoffs among employees and industry observers. Kreiz confirmed that workforce reductions are part of the plan, saying, “But reducing the workforce is a part of that. We said that, we were public about it.”
Kreiz said management would consider employees while making those decisions and communicate its plans. He also argued that the company’s objective reaches beyond short term trading and three years of merger savings, saying, “we’re building a company for future generations.”