Skydance, in its first earnings report after closing its mega-deal for Warner Bros. Discovery, explained where it hopes to generate synergies and cost savings and announced a package of HBO Max and Paramount+ for early 2027, as well as an investor day in the first half of next year.
The company reported its third-quarter results Monday afternoon, with revenue of $7 billion, net income of $73 million and adjusted EBITDA of $1 billion, all slightly skewed by the fact that the WBD deal didn’t close until after the end of the quarter. As a result, none of WBD’s findings are included in the report, authored by CEO David Ellison and co-CEO Ynon Kreiz.
Instead, it’s the deal and what it means for Skydance’s future that will dominate the earnings conversation, with the impending bundle surely top of mind for investors and consumers, ahead of an inevitable merger of the services in the future. The move is similar to Disney’s approach with Hulu, where these two services remain separate, but are also increasingly intertwined.
As for where the cost savings will be made?
Skydance says it expects at least $2.2 billion from corporate overhead, real estate and facilities, as it rationalizes office space and eliminates dual corporate roles; $1 billion from marketing by streamlining spend and using their own platforms for more promotional work; $1.2 billion from technology as they unify technology stacks and products; $1.4 billion from purchasing and supplier management.
The company also says it sees an opportunity to save in content, while reiterating that it still plans to spend $30 billion on content each year.
“With the reach of our combined streaming, broadcast and cable platforms, every title can work harder for us, and as a company, we can make smarter choices about how we distribute and monetize our selection,” the executives wrote.
Gn bussni
