According to a Bloomberg News report, Paramount Skydance Corp. (led by CEO David Ellison) is planning to acquire Warner Bros. Discovery Inc. (WBD) in a potential merger valued at around $60 billion. The key focus of the proposal is to preserve much of Warner Bros.' existing structure and operations, aiming to alleviate concerns from regulators, Hollywood unions, and employees about mass layoffs or reduced content production.
This approach contrasts with past media mergers that often led to significant cost-cutting and job losses.
Ellison's strategy emphasizes growth over downsizing, with the following highlights:
- Retention of Creative Teams: The creative personnel at both Paramount and Warner Bros. studios would be kept intact to maintain high-quality film and TV production. Ellison has expressed a philosophy of "making more, not less," including a goal to produce 30 films annually across the combined company using AI and emerging technologies.
- Streamlining Back-End Operations: While creative sides remain separate, marketing and distribution functions would be consolidated to achieve efficiencies without disrupting content creation.
- Streaming Integration: Warner Bros.' HBO Max service would be folded into Paramount's existing Paramount+ platform, creating a unified streaming offering.
- News Division Synergies: Potential resource-sharing between Paramount's CBS News and Warner Bros.' CNN, though specifics are still under discussion.
- Real Estate and Assets: No final decisions on divesting iconic properties like Warner Bros.' Burbank studio lot or Paramount's Hollywood lot, but this remains an open option to address antitrust concerns.
