David Ellison’s nearly yearlong journey to close the deal had its ups and downs.
Many outspoken actors, writers and producers in Hollywood rallied behind efforts to block the merger, arguing in an open letter earlier this year that further corporate consolidation of the entertainment industry will “threaten the sustainability of the entire creative community.”
After the deal was approved by the U.S. Justice Department, the European Commission and dozens of other countries worldwide, it was held back by a lawsuit led by California’s Democratic attorney general, Rob Bonta.
Bonta and other state attorneys general argued that the deal, if completed, would reduce competition and potentially imperil the journalistic independence of CNN.
But what once looked like a formidable legal challenge folded quickly.
Paramount Skydance, led by Ellison, reached a deal with the states on Sept. 21, which requires the combined company to release 30 films per year for the first two years of the deal, followed by 32 films in each of the following three years — or pay a fee for missing that target. Ellison also pledged to establish independent editorial boards overseeing the operations of CNN and CBS News.
J. Christopher Hamilton, a Syracuse University professor and an entertainment attorney, said that the merger’s completion is “a bittersweet victory, depending on which side of the table you sit on.”
“There’s reason to celebrate and be excited, but also there’s a sobering reality when layoffs start to hit people unexpectedly,” he said. “And there’s fewer and fewer outlets for character-driven pieces and art-house pieces, true independent film voices getting a chance to be heard.”
Ellison and Kreiz described the merger and rebrand as “the beginning of a new era in entertainment.”
“This isn’t a merger of convenience,” they wrote in their memo. “It’s the beginning of a new era in entertainment, and we wanted a name that looks forward rather than one that simply splices together the past.”
But the two hinted that layoffs are likely, writing that “integrating two companies will bring change, including difficult decisions that affect our workforce. We are committed to handling this process thoughtfully and respectfully.”
Already, there has been some restructuring and shake-ups at the executive level.
Ellison enlisted Kreiz, who is known for cutting costs at Mattel, where he served as CEO and helped turn Barbie from a doll into a Hollywood blockbuster.
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HBO’s Casey Bloys will be the leader of the company’s combined streaming efforts, with Paramount streaming chief Cindy Holland announcing her departure last week.
Mike de Luca and Pam Abdy, Warner’s film chiefs, also exited, and Ellison appointed Paramount Pictures co-chairs Dana Goldberg and Josh Greenstein to lead the expanded film division.
On the news side, Mark Thompson is staying on at CNN as chairman and editor-in-chief of CNN Worldwide. Bari Weiss will continue to lead CBS News as editor-in-chief.
Skydance said in a news release Tuesday that Ellison will “chair the Skydance Board of Directors, and continue to serve as Skydance’s Chairman and Chief Executive Officer.” The board will also add Kreiz, media mogul Laurene Powell Jobs and Bobby Kotick, founder and former CEO of Activision.
Hamilton, who has worked at Hollywood companies including Lionsgate and Viacom, said leadership shuffles are par for the course.
“I don’t have any doubts that the Ellisons are going to make a lot of noise when it comes to shaking up Hollywood, leading these legacy media companies as this new conglomerate,” the entertainment attorney said.
However, he added, “I question the sincerity and consistency when pressure mounts and it’s contrary to what they want to do, whether it’s AI regulations or expectations from the labor unions, whether it’s storytelling and having a true reflection of diverse voices. When pressure shows up, are they really going to be fair? Or are they going to be like, ‘No, this is my ball, I control the game.’”
It’s a concern that opponents of the merger have had since it was first floated as a possibility. Critics have warned the deal will lead to layoffs, fewer opportunities and higher prices.
On Monday, a group of private named individuals filed an emergency request for the Supreme Court to get involved in the merger, claiming that the terms of the states’ deal “do not preserve competition between Paramount and Warner Bros.” The Supreme Court denied the request for the court to get involved.
Actor Mark Ruffalo, one of the most staunch members of the Block the Merger movement, vowed to continue pushing back against media consolidation.
“This was never about just one merger: this was about fighting back against corrupt oligarch billionaires trampling the interests of everyday people to line their own pockets,” Ruffalo wrote in a post on X last week. “We’re still in that fight.”
Skydance’s stock price had dropped 2.5% by Tuesday afternoon, closing at $9.53 per share. Trump told reporters he was “happy” about the deal formally closing, saying it’s a “great merger.”
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