From CNBC · Catriona Marangi,Sarah Whitten · · 2m
Skydance closes Warner Bros deal, targets $6bn in cuts
David Ellison and Ynon Kreiz take over combined media giant with 200 million streaming subscribers, but face antitrust film quotas and workforce reductions.
In brief
David Ellison and Ynon Kreiz take over combined media giant with 200 million streaming subscribers, but face antitrust film quotas and workforce reductions. Skydance completed its acquisition of Warner Bros. Discovery on Tuesday, creating a media company with two film studios, CBS, CNN, and streaming services…
Paramount closes Warner Bros deal
Skydance finalized its acquisition of Warner Bros. Discovery on Tuesday. David Ellison and Ynon Kreiz will lead the combined company as co-CEOs.
What Skydance now owns
The combined company includes film studios Paramount and Warner Bros., CBS broadcast network, pay TV channels CNN, TNT, MTV and BET, and streaming services Paramount+ and HBO Max.
Two hundred million streaming subscribers
Skydance reaches scale immediately in streaming between HBO Max and Paramount+, with over 200 million global streaming subscribers. The company also owns the Olympics internationally and a profitable linear portfolio anchored by CBS.
“By combining Paramount and Warner Bros, we have the greatest content engine.”
Ellison and Kreiz split duties
Ellison focuses on creative vision, technological innovations and long-term strategy. Kreiz leads integration of the two companies and handles day-to-day management and operations.
Antitrust settlement film quotas
As part of a settlement with state attorneys general, Skydance agreed to release at least 30 films into theaters annually in 2027 and 2028, and at least 32 films annually in 2029, 2030 and 2031. Currently 35 films are scheduled for next year.
Eighty billion in debt, six billion target
Skydance must manage roughly 80 billion dollars in debt from the merger and is targeting 6 billion dollars in cost savings over the next three years through technology, marketing consolidation, real estate optimization and labor reductions.
“Reducing the workforce is a part of that. We said that, we were public about it.”
News divisions face independence test
The merger brings CBS and CNN under one roof. Skydance's settlement requires a new board to oversee both networks to ensure editorial independence. Mark Thompson remains CNN chairman and editor-in-chief, Bari Weiss continues as CBS News editor-in-chief.
“Corporate stays out of editorial.”
Newsrooms to run independently
Kreiz said the CBS and CNN newsrooms would continue to run independently in parallel with independent editorial operations, keeping the two well-established, highly recognized news brands separate.
“We'll look to keep the businesses run in parallel with independent editorial operation.”
What to remember
Skydance completed its acquisition of Warner Bros. Discovery on Tuesday, creating a media company with two film studios, CBS, CNN, and streaming services Paramount+ and HBO Max serving over 200 million subscribers.
