Paramount Completes Warner Bros. Acquisition, Ellison to Lead New Media Empire
Translated & summarized from Calcalist by baba
Paramount has finalized its acquisition of Warner Bros., with David Ellison set to lead the newly formed media company, Skydance. The deal, which faced competition and antitrust lawsuits, unites major streaming services and television networks. Ellison has committed to significant film investment and cost savings, which may lead to job cuts. Israeli Yinnon Kreiz has been appointed co-CEO.
The story in 6 lines · by baba
- Paramount has finalized its acquisition of Warner Bros., creating a new media empire led by David Ellison.
- The combined company, to be named Skydance, will integrate major streaming and television assets.
- David Ellison committed to investing $1.5 billion more in films and releasing at least 30 films annually.
- Ellison must achieve $6 billion in cost savings over three years, likely resulting in job cuts.
- Israeli Yinnon Kreiz was appointed co-CEO of the new entity.
- The acquisition process involved competition with Netflix and settlement of antitrust lawsuits.
Paramount has finalized its acquisition of Warner Bros., according to a report in The New York Times. The deal places David Ellison, son of Oracle founder Larry Ellison, at the helm of a vast media empire encompassing some of Hollywood's most valuable assets. The combined company will be named Skydance.
"Today is a historic day, not just for Skydance but for the entire industry," Ellison stated. "We are excited to get to work." The path to completion was challenging, with Ellison initially competing against Netflix for Warner Bros. After a month of price wars and nine different offers, he secured approval from shareholders. Subsequently, lawsuits were filed alleging antitrust violations.
A lawsuit brought by several U.S. states was settled last month when Paramount agreed to conditions including the establishment of an independent council to safeguard the credibility of CNN and a commitment from Ellison to invest an additional $1.5 billion in films over the next five years. Ellison also pledged to release at least 30 films annually from his studios.
The acquisition unites streaming services Paramount Plus and HBO Max, along with television networks CBS, CNN, Comedy Central, Nickelodeon, TNT, HBO, and MTV, under one roof. The company also owns major brands such as DC Universe, "Star Trek," and "Mission: Impossible."
Ellison faces a mandate to achieve $6 billion in cost savings over the next three years, a target likely necessitating thousands of job cuts. Last week, Ellison announced the appointment of Israeli Yinnon Kreiz as co-CEO. Kreiz recently departed his role leading toy company Mattel and previously worked with Haim Saban, bringing the studio one of its biggest hits, "Barbie."
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