Skydance announces cost-saving measures, streaming partnership
Following its acquisition of Warner Bros Discovery, Skydance has outlined a plan to achieve US$6 billion in cost reductions over the next three years. The newly formed entertainment and news conglomerate, headed by CEO David Ellison and Co-CEO Ynon Kreiz, now encompasses Hollywood studios Warner Bros and Paramount, the CBS broadcast network, CNN, and numerous cable channels.
The company will provide full-year financial guidance during its December quarter report. Prior to the acquisition’s completion last month, Paramount’s revenue increased by five percent, reaching US$7 billion for the quarter ending in September.
Streaming services are a key focus for growth, with Paramount+ revenue experiencing a 21 percent rise in the third quarter. The combined HBO, HBO Max, and Paramount+ services currently serve 203 million subscribers worldwide. Skydance will no longer publicly release quarterly subscriber numbers, aligning with industry trends that prioritize profitability and user engagement.
The merger resulted in US$87 billion in gross debt and US$10 billion in cash. Skydance faces competition from major media companies like Netflix and Walt Disney, as well as platforms such as YouTube and TikTok.
Ellison and Kreiz expressed confidence in achieving the projected cost savings, with 30 percent expected in the first year. This includes at least US$2.2 billion in reductions from corporate overhead and real estate, US$1 billion (20 percent) from marketing, and US$1.4 billion from technology costs.
Earlier on Monday, Skydance announced significant leadership changes within DC Studios, with Jeremy Latcham replacing James Gunn and Peter Safran. Gunn and Safran will continue their creative work within the company. The underperformance of Warner Bros’ film slate is expected to impact fourth-quarter profit by up to US$200 million. Tom Cruise’s film “Digger” recently debuted at number five in the U.S. and Canada.
Source
“Skydance details cost cuts, sets streaming bundle for early next year”
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