The $110 billion merger of Paramount and Warner Bros. Discovery officially closed Tuesday, and the new Skydance spent Wednesday introducing itself to a stock market that closed the shares down 6.8% at $8.98, per Deadline.
The debut press conference was produced like a product launch, which is the only sane way to introduce a company with $80 billion in debt. Co-CEOs David Ellison and Ynon Kreiz, "following the trend of co-CEOs dressing alike," took the stage at Paramount's Stage 3, the lot's "first of its kind virtual production stage, utilizing laser projection," and opened with a Day One sizzle reel of the merged catalog. When a $110 billion media company has to sell you its future, it uses a sizzle reel. The press release is now a trailer.
The pitch was math with no decimals. $79 billion in debt, a $30 billion content budget, $6 billion in cost synergies by 2028, a "complete financial envelope." Asked how the debt would affect original storytelling, Ellison pointed to Sinners, which "was actually my favorite movie last year," and promised "a completely diverse slate." He also reminded the room that Paramount had "over delivered on synergies," $2.7 billion against an initial promise of $2 billion. The stock heard all of it and closed down for the second straight day. Ellison's line to the skeptics was less a promise than a maturity date: "give us time, and we'll prove it."
The unanswered questions are the real story. No timeline for when HBO Max and Paramount+ get merged, no plan for the 30-plus cable networks, no word on how 30 films a year actually get made or what happens to Barbie 2. The new board added Laurene Powell Jobs and Bobby Kotick and brought in Tony Blair as an advisor, which tells you exactly who they wanted in the room when the cameras showed up. One analyst summarized the whole day: "It's a show me story."
YOUR TURN: When a $110 billion company says "give us time," is that a promise or a payment plan?
Comments (1)