Skydance CEO David Ellison said the newly merged company would be dedicated “to rebuilding trust” after the bruising battle to bring Paramount and Warner Bros. Discovery together.
The year-long saga was one of a handful of topics discussed by Ellison and co-CEO Ynon Kreiz at a press event Tuesday at the Paramount Lot in Los Angeles. The merger was officially closed hours before the rally.
“It was a turbulent process and, at times, an ugly process,” Ellison said of the period when Paramount outmaneuvered Netflix and Comcast and settled two antitrust suits before closing the $110 billion deal.
With the deal now official, Skydance needs to “turn the page and make sure we are rebuilding trust.”
Achieving the merger’s goals, as well as complying with the terms of a consent decree reached between Skydance and plaintiffs who sued to block the deal, will help restore confidence in the company, Ellison added. Regarding the release of at least 30 films in theaters per year, for example (one of the terms of the authorization decree), “the only way to achieve this is to bring the creative community together”, he added. “It is when we deliver on all these promises that we will restore trust.”
Asked if he felt stung by attacks on him personally from opponents of the deal, including the thousands of members of the creative community who signed a petition against the deal, Ellison recalled his background in the industry. The former actor began producing in his 20s and began working at his production company, Skydance, about 16 years ago, he said.
“I was an integral part of that community,” he said of the creative field, contrasting with the 14 months he was CEO of a major media company. “For over 15 years I was an on-set producer” on Skydance projects like Top Gun: Maverick and recent payments into the Mission: Impossible franchise, Ellison reminded the audience. “So, I love this community. I have a very good relationship with this community and I understand that even people who are friends are opposed to this merger.”
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In addition to the merger process, Ellison and Kreiz talked about the company’s massive debt load, worth nearly $80 billion, as well as streaming, cable TV and movie projects. In total, the formal remarks lasted approximately 30 minutes and were followed by a larger, unofficial media mixer involving other Skydance executives. Executives sent a heavy memo to employees setting out goals and then called a town hall meeting.
Notably, the significant layoffs expected at Skydance in order to repay its debt were not a topic during the Q&A with the media.
RELATED: Skydance Co-CEOs Insist Its Massive Debt Is Manageable and Won’t Hurt Production
Expanding on his personal experience in stark contrast to his former siblings in the creative ranks, Ellison leaned into the circumstances of the entertainment industry, arguing that the situation demanded bold action. As Netflix, YouTube, Apple and Amazon gradually began to chip away at Hollywood’s traditional revenue streams, the industry was too complacent, he argued. This paved the way for Skydance to take over the much larger Paramount and then make a play for Warner Bros.
“The reason we’ve gotten to the point where Paramount and Warner Bros. could be acquired is because the companies weren’t disrupted over a decade ago,” Ellison said. “They allowed Netflix to disrupt their business. They allowed Amazon Prime Video to disrupt their business. They haven’t transformed and they’ve held on to the past for too long. And, you know, certainly if you don’t disrupt your business, someone else will.”
The Skydance merger, he said, “is the solution to this problem, fundamentally, I believe.” The combination of streaming services and franchise properties will allow Skydance “to compete with the Disneys, the Netflixes, the Amazons and anyone in the world.”
In this context, he continued, “I think I understand” the distrust of the merger. “I think if you’re intellectually honest, you have to zoom out and see that the symptoms of this go back a long time. And when you start to wonder, what was the alternative? And I truly believe that, as someone who I’ve spent my whole life in this business with. I went to film school at USC. I spent 16 years building Skydance. I truly believe this is the best outcome for the industry. I think we’re going to be successful for the community creative. I think we will succeed for our shareholders and the best I can say to our detractors is: give us time, and we will prove it.
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