It has been nearly a full year of David Ellison’s pursuit to combine Warner Bros. with Paramount. After a long legal process, the deal has recently been given the go-ahead. According to The Hollywood Reporter, Ellison has now taken to social media to announce that the Paramount-Warner Bros. conglomerate will go by Skydance, which is the name of the studio he founded 20 years ago.
He posted on X,
Both have distinct identities, extraordinary legacies and brands that have resonated with audiences for generations. We wanted a name that would give the combined company an identity of its own while allowing Paramount and Warner Bros. — and all our extraordinary brands — to remain in the spotlight.”sponsored content
Paramount and Warner will become the sub-brands of Skydance. It’s likely that under their logos at the start of films, it will feature the subtitle, “A Skydance Company” or something similar. Mike Deluca and Pam Abdy are likely to be out as well.
Ellison continues,
We have big goals for Skydance, and we intend to pursue them with passion, imagination and a willingness to take smart risks. At the same time, we will honor what makes Paramount and Warner Bros. special — giving both studios the opportunity to grow, tell more great stories and bring those stories to even broader audiences around the world, powered by the scale and capabilities of Skydance.”
Now that the deal will be closing, it’s expected that Warner Bros. Discovery CEO David Zaslav will depart, but he won’t be leaving empty-handed. He stands to earn more than $550 million in stock and cash, which includes $34.2 million in cash severance payments.
According to the terms of the settlement, the newly merged Paramount-Warner Bros. Discovery will be prohibited from selling either the Paramount Studios or Warner Bros. lots in California for at least five years. It’s also obligated to invest at least an additional $300 million on film production in the U.S. annually. It must also release at least 30 theatrical movies in the first two years, which shouldn’t be a problem, as David Ellison has frequently promised to release that many annually. In years 3-5, that number will increase to 32, with a 45-day window for wide-release films.
Former Mattel CEO Ynon Kreiz has been announced as Co-CEO of the merged company. “Ellison will focus on the company’s long-term strategy, creative vision and direction, including its talent relationships, strategic partnerships, technology and capital allocation,” said Paramount in a statement. “Kreiz will focus on the company’s day-to-day management and integration of the combined businesses.“
In his own statement, Ellison said, “Bringing together Paramount and Warner Bros. Discovery to create a next-generation global media company is a transformational moment for our industry.“
“Leading it takes a rare combination of strategic vision, operational depth and experience running a public company at the highest levels of media,” he added. “Ynon brings all three. In Ynon, I’m adding a partner with strong leadership and the operating firepower this integration demands. It’s a division of labor built on our complementary strengths, with clear reporting lines and it lets me focus where I can contribute most: long-term strategy, the company’s overall creative direction, talent relationships, strategic partnerships, technology and capital allocation. We’re like-minded, we see this business the same way and there’s no one I’d rather partner with. Together we’ll build one integrated company that is creator-first, tech-forward and built to scale globally.“