Skydance CEO warns staff of 'difficult decisions' after Paramount-WBD deal

Speaking after the $110 billion deal closed, David Ellison said Skydance would invest in storytelling and technology while acknowledging the changes required to integrate the two companies

Skydance CEO David Ellison warned employees on Tuesday that integrating Paramount and Warner Bros. Discovery (WBD) will require "difficult decisions" and changes, while outlining his priorities for the newly combined media company.

 

Ellison made the remarks at the combined company's first town hall, hours after Paramount completed its $110 billion acquisition of WBD. According to a report by Business Insider, in a leaked audio recording of the employee-only meeting, Ellison thanked Warner Bros. Discovery employees for joining the company and Paramount staff for their patience during the lengthy deal process. 

 

“It is humbling to be in this room,” he said.  

 

Ellison described the transaction as the culmination of a three-year plan and acknowledged the difficulty of getting it completed. “It was not easy to get here. At times, it was downright ugly,” he said, according to Business Insider, adding that he would do it again.

 

 

The Skydance CEO and co-CEO Ynon Kreiz have identified four priorities for the combined company: strengthening storytelling, building technological capabilities, competing more effectively in a crowded market and earning trust.

 

The company now brings together assets including Warner Bros. and Paramount Pictures, HBO Max, Paramount+, Pluto TV and Discovery+, along with television networks including CBS, CNN, HBO, HGTV, TLC and Discovery Channel.

 

“For the first time, we have the studios, the franchises, the libraries, the talent and scale all under one roof to compete with anyone in the world,” Ellison said. 

 

However, he stressed that the deal was not simply about increasing the company's size. He said the company would invest aggressively in storytelling and compete not only with traditional media companies such as Disney and Netflix, but also with technology companies including Amazon and YouTube for consumers' time and attention.

 

Technology would be a core part of that strategy, he said. “We're going to embrace technology,” he said, describing it as a fundamental capability rather than a side project.

 

The comments came as employees at both Paramount and WBD face uncertainty over how the two organisations will be integrated. Business Insider reported that Ellison had previously told investors the merger would generate $6 billion in cost savings, while the company has said layoffs would not account for most of those savings.

 

“Bringing together two companies of this size and complexity will require difficult decisions,” Ellison said. “There will be changes, and there will be impacts. I'm not going to pretend otherwise.”

 

He added the company would move through those decisions “as quickly and thoughtfully” as possible. The remarks underscored concerns among employees about potential job losses and changes as the two businesses are integrated.

 

Under the new structure, Kreiz will oversee the integration and day-to-day operations, while Ellison will focus on creative and technology strategy. Ellison said the leadership team was not seeking to preserve the status quo but to build the company for what comes next.