Skydance details cost cuts, sets streaming bundle for early next year

Summary

• Skydance plans to deliver US$6 billion in cost savings from its Warner Bros Discovery acquisition over three years.
• The merged company will launch a streaming bundle of HBO Max & Paramount+ early next year.
• Under CEO David Ellison & Co-CEO Ynon Kreiz, the new entity combines Warner Bros, Paramount, CBS, CNN, & various cable channels.
• Paramount reported a 5% revenue increase to US$7 billion for the quarter ended in September prior to the merger.
• Paramount+ revenue jumped 21% in the third quarter, while combined HBO & HBO Max services reach 203 million global subscribers.
• Skydance will cease disclosing quarterly subscriber figures to focus on profitability & engagement like Netflix.
• The acquisition left the company with US$87 billion in gross debt & about US$10 billion in cash.
• Expected savings include US$2.2 billion from corporate overhead & real estate, US$1 billion from marketing, & US$1.4 billion from technology costs.
• Significant executive changes occurred as James Gunn & Peter Safran stepped down from DC Studios, replaced by Jeremy Latcham.
• Underperformance in Warner Bros' film slate is expected to reduce fourth-quarter profits by up to US$200 million.
• Tom Cruise's film "Digger" struggled at the box office, finishing fifth in its opening weekend in October.