David Ellison, the CEO of the newly formed media giant that has acquired TVN, addressed employees for the first time, stating, “Merging two companies of this size and complexity will necessitate difficult decisions.” Ellison, who leads Skydance, welcomed Warner Bros. Discovery staff and thanked the Paramount team for their patience during the historic first meeting of the merged company.
Ellison’s remarks came on Tuesday at 1:00 PM Eastern Time, shortly after a company-wide announcement confirmed the completion of the $110 billion merger between Paramount and Warner Bros. Discovery. The atmosphere was lively as Bruno Mars’ hit “I Just Might” played before his appearance.
Reflecting on the Merger Journey
In his speech, Ellison highlighted the long and challenging path Paramount took to acquire Warner Bros. Discovery, describing it as the culmination of a long-term plan developed over three years.
Skydance’s Four Key Priorities
- Achieving success in storytelling,
- Becoming a media company with significant technological potential,
- Establishing a leadership position in a saturated market,
- Building trust on a daily basis.
Skydance now boasts a diverse array of media assets, including Warner Bros. and Paramount Pictures studios, streaming platforms HBO Max, Paramount+, Pluto TV, and Discovery+, as well as television channels CBS, CNN, HBO, HGTV, TLC, and Discovery Channel, among others.
Aggressive Investment Plans
Ellison remarked that the combined entity possesses the scale and potential to compete with major rivals. However, he emphasized that size alone isn’t sufficient for success.
Skydance will compete against industry titans like Disney and Netflix, along with tech giants such as Amazon and Google’s YouTube.
Emphasis on Technology
Ellison announced that Skydance intends to prioritize technology as a fundamental competency rather than merely a trendy focus or side project.
Kreiz will oversee the integration process post-merger and manage daily operations, while Ellison will shape Skydance’s creative and technological strategy.
Addressing Employee Concerns
Prior to the merger, staff at Paramount and WBD expressed concerns about potential internal competition. Ellison assured them that layoffs would not be the main source of the projected $6 billion in savings from the merger.
During the event, CNN star Anderson Cooper joined Ellison on stage, remarking on the significant anxiety and concerns among CNN employees regarding potential changes, despite Mark Thompson remaining as the head of the network.
In response, Ellison reassured employees that he would not interfere with CNN’s news coverage and would focus on journalistic matters.
The Merger is Complete
The journey to acquiring Warner Bros. Discovery was lengthy and complex. Paramount initially submitted a competing bid to purchase WBD, which had previously entered into an agreement with Netflix. After winning the bid, Paramount faced lawsuits from 12 states and the Writers Guild of America, ultimately settling and agreeing to increase domestic production.
During his address, Ellison acknowledged Makana Delrahim, the company’s legal chief, who previously worked at the Department of Justice during Donald Trump’s first term.
