Skydance CEO David Ellison Addresses Merger Challenges, Hollywood's Disruption
In his first address as co-CEO of the newly combined Skydance, David Ellison acknowledged the "turbulent and at times an ugly process" of the merger while urging Hollywood to embrace change.
David Ellison, co-CEO of the newly formed Skydance, expressed relief on Tuesday following the completion of the company's merger, a process he described as "turbulent and at times an ugly." Speaking to reporters at the Paramount lot, Ellison, dressed in a blazer, T-shirt, and jeans, emphasized his desire to "turn the page" after a challenging acquisition that included regulatory scrutiny and a competitive bidding war.
Ellison and co-CEO Ynon Kreiz addressed questions regarding the integration of Warner Bros. and Paramount, stating that both studios would maintain separate creative development and identities. The leadership team offered no definitive timeline on which lot would serve as the primary headquarters, indicating only that film operations would be centered on one lot and TV and streaming on the other. In a symbolic move, "A Skydance Corporation" was added to the iconic Warner Bros. water tower in Burbank.
Skydance's first day of Wall Street trading saw its stock close down slightly at $9.51 per share, opening at $9.77. Questions arose about the company's strategy for managing its nearly $80 billion in debt while also committing $40 billion to content creation. Kreiz responded by stating, "We have a business plan."
Ellison extended an olive branch to critics of the merger, acknowledging their apprehension and stating a commitment to "rebuilding trust." He also reiterated plans to eventually merge HBO Max and Paramount+ into a single streaming service, though a bundled subscription offering is more likely in the near term.
Critiquing Hollywood's traditional approach, Ellison suggested that the industry's resistance to change allowed competitors from Silicon Valley, such as Netflix and Amazon, to gain significant market share. "They held on to the past for too long," he said. "It is a certainty that if you don’t disrupt your business someone else will do it. This is the solution to that problem."
Following the formal Q&A, reporters had opportunities to speak with various Skydance senior leaders, including film heads Dana Goldberg and Josh Greenstein, TV head George Cheeks, DC Studios co-chair Peter Safran, and streaming boss Casey Bloys, who reportedly drew the most attention.
