PSKY Co-Chair Reputation Is As Cost-Cutter

Ellison and Kreiz

David Ellison has named Mattel CEO Ynon Kreiz co-CEO of the combined Paramount-Warner Bros. Discovery, pairing himself with an operator known for cost-cutting as the company tries to extract more profit from its franchises while carrying roughly $80 billion in debt and delivering $6 billion in promised savings.

Kreiz will handle day-to-day operations and the integration; Ellison will oversee creative development and overall strategy. “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,” Ellison said Wednesday.

Reuters reports Kreiz, who joined Mattel in 2018 to turn around the toymaker, cut more than $1.5 billion in costs through thousands of job reductions and a simpler manufacturing setup. Those moves helped Mattel top $1 billion in annual adjusted EBITDA in 2021, post 19% revenue growth, and lift its share price 24% that year. A previous stint leading production company Endemol was also marked by restructuring aimed at profitability and output.

Results have since cooled. Pandemic disruption, weaker consumer spending amid inflation, and tariff costs have kept Mattel from sustaining those gains, and Endemol’s private-company record has also drawn scrutiny—raising questions about how Kreiz will perform at a far larger media company.

Antitrust commitments further limit easy cuts. Paramount pledged to spend at least $300 million more each year on domestic film production, keep both studios’ production lots operating, and honor existing Hollywood union agreements, closing off several common routes to synergies.