David Ellison, CEO of Paramount Skydance, recently addressed Warner Bros. Discovery’s executives, sharing insights about the massive $111 billion merger. This meeting gathered around 160 executives in person at the Steven J. Ross Theater in Burbank and over 300 online.
Ellison kicked off his talk by highlighting the merger’s potential impact. He predicted that the new Paramount-Warner Bros. partnership could produce about 30 films each year—15 from each studio. He also praised HBO, calling it “the gold standard in television.”
He acknowledged the recent challenges that Warner Bros. Discovery faced, particularly after Netflix recently secured a deal for Warner’s studios and streaming operations. Yet, Ellison reassured everyone that those hurdles were now behind them.
During the Q&A session, Ellison addressed concerns about potential job cuts. While he estimated around $6 billion in savings from the merger, he did not specify how many layoffs might occur, emphasizing that many cost reductions wouldn’t involve job losses.
An executive from Warner Bros. remarked that Ellison appeared honest and genuine, despite attendees wanting more detailed answers about layoffs and the future company structure. This hesitance was partly due to regulatory restrictions during the merger process.
Ellison was also asked about plans for merging HBO Max and Paramount+. He mentioned the need to collaborate with both teams to figure out the combined streaming offerings. Additionally, when questioned about CNN, he assured attendees that the news outlet would maintain its editorial independence.
Attendees noted the lack of surprises in Ellison’s address, which seemed reassuring. Feedback from Paramount suggested that many appreciated his industry knowledge and vision.
As Paramount moves forward, they expect the deal with Warner Bros. Discovery to close in the third quarter of 2026. Notably, they have committed to a “ticking fee” of 25 cents per share to shareholders for each quarter the deal is delayed beyond that date.
In a world where mergers and acquisitions are common, this union could reshape the entertainment landscape, making it crucial for both companies to navigate this transition smoothly. According to a report by PwC, the media and entertainment sector saw over $40 billion in transaction value last year, underscoring a growing trend in consolidating resources to better compete in the market.
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David Ellison,Paramount Skydance,Warner Bros. Discovery
