The merged company, Skydance, combines Paramount+ and HBO Max as executives warn staff of coming job cuts.
Paramount completed its $110 billion acquisition of Warner Bros. Discovery on Tuesday to form Skydance, bringing together major streaming platforms Paramount+ and HBO Max along with networks including CBS, CNN, and HBO.
David Ellison, chairman and chief executive of the combined company, and co-chief executive Ynon Kreiz notified employees in a Tuesday morning memo that layoffs are coming as the businesses integrate. Paramount executives have targeted more than $6 billion in annualized cost savings over three years. While Skydance has not stated how many workers will lose their jobs, an August report from Los Angeles County projected the merger could eliminate about 4,500 film and television positions over three years in Los Angeles alone.
Executive roles and streaming operations
Under the leadership structure, Kreiz will handle day-to-day operations and integration, while Ellison focuses on strategy and technology. Casey Bloys, who led HBO and Max Content, takes over as co-chair and chief content officer for direct-to-consumer content, placing the HBO leadership team over the combined streaming operation.
Mark Thompson remains chairman and editor-in-chief of CNN Worldwide, and Bari Weiss stays on as editor-in-chief of CBS News. Skydance says the combined business will generate nearly $70 billion in annual revenue. The Ellison family is the company’s largest shareholder, supported by Oracle co-founder Larry Ellison. Skydance Class B shares began trading Tuesday on the New York Stock Exchange under the ticker symbol SKYD.
Terms of the legal settlement
The deal closed after settlements resolved legal challenges from a Hollywood writers’ union and a coalition of about a dozen states led by California. The states had filed lawsuits arguing the consolidation would reduce competition, raise prices, and hurt movie theaters and cable distributors.
Under the settlement agreement, Skydance must release at least 30 movies annually and follow rules prohibiting artificial intelligence from generating those films. If the studio misses its annual movie quota, it must sell its 49% stake in Miramax. The pact also requires at least 20% of all film production to occur in the United States during the first two years, increasing to more than 30% across the subsequent three years.
To address concerns regarding news coverage, the company agreed to form a news editorial independence board designed to safeguard reporting at CBS and CNN.
