Skydance looks to cut more than $6 billion as it integrates Warner Bros. operations
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Set us as preferred David Ellison’s Skydance Corp.is setting the stage for big changes in 2027.Since Skydance closed its $111-billion deal for Warner Bros.
Discovery last month, Ellison’s team has been scouring the vast Skydance portfolio for cuts and efficiencies as executives work to integrate the operations of the two legacy entertainment companies in the coming months.On Monday, the company said it would offer HBO Max and Paramount+ together as a bundle early next year, which is part of Skydance’s plan to prioritize streaming.
The price of the service was not disclosed.But in a letter to shareholders to report Paramount’s third-quarter earnings, Ellison and Co-Chief Executive Ynon Kreiz said customers would enjoy “an even greater value” for the bundled offering when compared to signing up for the two streaming services separately.Because Skydance closed its purchase of Warner Bros.
Discovery on Oct.6, the company released numbers for only the Paramount half of the enterprise.
Paramount Skydance’s third-quarter net earnings were $73 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $1 billion, a 14% margin on revenue of $7 billion, which grew 5% year-over-year.Paramount remains on track for the high end of its 2026 profitability outlook at $3.9 billion.
Hollywood Inc.Skydance made the announcement Monday.
Gunn and Safran will be replaced by Marvel veteran Jeremy Latcham.One of the company’s highest priorities is to get its balance sheet in order.The company has more than $80 billion in debt, and Ellison has promised investors that he and his team would eliminate $6 billion in expenses.
On Monday, the executives signaled they were looking to exceed that sum.The workforce is expected to shrink, although the company hasn’t identified the magnitude or ti...