In a call with Wall Street analysts, David Ellison, chairman and CEO of Paramount Skydance laid out some of his plans for the merger with Warner Bros. Discovery and said that they planned to combine the HBO Max and Paramount streaming services.
Ellison did not say discuss the branding or name for the merged streamers. Nor did he offer a specific timeline other than saying it would happen in "the coming years".
He did stress that “HBO is a crown jewel in this business, having brought to life some of the most powerful stories told over generations. And under our ownership, they will continue to have the resources and independence to do what it does best.”
“DTC growth will be essential to the success of the combined company,” he told analysts. “To enhance competition and deliver viewers a truly compelling offering, we will combine the streaming portfolios of the 2 companies into one stronger platform over the coming years. Across the 2 platforms, there are over 200 million DTC subscribers today in more than 100 countries and territories worldwide, positioning us to compete effectively with the leading streaming services in today's marketplace. Our offering is powered by a complementary portfolio of fan favorite series and franchises, premium sports and trusted news brands. We are confident that by coupling these offerings, along with significant investment in technology and innovation, we can provide consumers significant value in a compelling and engaging platform.”
A revised $111 billion bid for Warner Bros. Discovery by Paramount convinced Netflix not to raise its previously accepted bid to acquire some of WBD’s assets and allow Paramount to acquire the company.
“By uniting our iconic studios, complementary streaming platforms with a global footprint, our cable and linear networks and our world-class IP, we have the opportunity to help shape the future and build a next-generation media and entertainment company,” Ellison said. “This has been our goal since day one. This is not about consolidation. It's about reinventing the business. We want to expand our reach and enhance our ability to create the world's most compelling stories and experiences, and we're incredibly excited about this transaction, and it will accelerate that ambition.”
“The combined DTC platforms is basically 200 million subscribers at close,” Ellison added later in the call. “To contextualize, it's roughly the size of Disney, right? Obviously, competitive with Amazon, competitive with Netflix. So we really do think that really positions us to be one of the leading competitors in the DTC space and really accelerates our growth there and achieving scale in DTC. We've talked about it since the beginning of the new Paramount Skydance as one of our primary goals for the business.”
During the call Andrew Gordon, chief strategy officer, COO and director at Paramount Skydance said that “on the closing timeline, we expect to close in the third quarter of 2026. In the event this is delayed, Warner Bros. Discovery shareholders will receive $0.25 per share ticking fee for each quarter until closing, starting after September 30, 2026.”
Ellison also said that they had no plans for divestitures at the moment and that the majority of cost savings would not come from layoffs.
He was not asked about the possibility of merging CBS News and CNN or his plans for the broadcast stations.
