Skydance co-CEO David Ellison tells CNBC company is positioned to win
Skydance co-CEO David Ellison told CNBC on Thursday that the newly combined entertainment behemoth is positioned to win in every single vertical it operates in, following the official closure of Paramount’s acquisition of Warner Bros. Discovery.
Scale and Debt After the Merger
The newly formed company brings together film studios Paramount and Warner Bros., the CBS broadcast network, pay TV assets including CNN, TNT, MTV, and BET, and streaming platforms Paramount+ and HBO Max. According to CNBC, Ellison emphasized the strength of the combined content engine during his interview. The transaction creates an enterprise managing roughly $80 billion in debt, which finance.yahoo.com reported as approximately $79 billion. Skydance targets $6 billion in cost savings over the next three years. Co-CEO Ynon Kreiz stated that these savings will come from technology integration, marketing consolidation, real estate optimization, and workforce reductions, adding that labor will not account for the majority of the savings.
The enterprise is projecting mid-single-digit revenue growth from an annual revenue base nearing $70 billion. Management aims to push free cash flow up to $10 billion by 2030, following a projected $4 billion next year after transaction costs are removed.
Ellison and Kreiz Plan to Merge Streaming Services
Ellison and Kreiz outlined ambitious plans to merge HBO Max and Paramount+, creating a streaming footprint that reaches over 200 million global subscribers. finance.yahoo.com noted that Ellison outlined four main goals for the merger: growing the top line by mid-single digits, accelerating streaming integration, scaling the direct-to-consumer and studio businesses, and executing a platform transformation. Kreiz added that the company expects to secure a third of its $6 billion synergy target within the first year.
To satisfy a settlement with a group of state attorneys general who filed antitrust lawsuits to block the merger, Skydance agreed to specific theatrical release quotas. The company must release at least 30 films into theaters annually in 2027 and 2028, and at least 32 films annually in 2029, 2030, and 2031. Rentrak data shows the combined entity currently has 35 films scheduled for release next year.
Skydance Establishes Board to Protect News Editorial Independence
The merger places two major news organizations, CBS and CNN, under common ownership. CNN has recently faced increased scrutiny and restricted press pool access from the administration of President Donald Trump.
To address antitrust concerns, the settlement with state attorneys general requires Skydance to establish a dedicated board to oversee CBS and CNN to protect editorial independence. On Monday, Skydance confirmed that Mark Thompson will stay on as chairman and editor-in-chief of CNN Worldwide, while Bari Weiss will continue as editor-in-chief of CBS News. Kreiz affirmed that both newsrooms will operate independently in parallel. Ellison maintained that corporate leadership stays out of editorial decisions.