Key insights
- The article expresses significant concerns about the financial sustainability of Skydance's proposed combination with Paramount Global. With substantial debt, ambitious spending plans on content, and a stated goal of cutting $6 billion in annual spending, the author questions the long-term viability of the venture. The article implies that the current leadership's strategy is unsustainable, raising doubts about the future of the combined entity and its impact on Paramount Global's operations and investors.
The combined company has ~$70B in annual revenue, a market cap of ~$40B and is ~$80B in debt. They want to cut $6B in annual spending, which means firing employees (and apparently blasting former Warner Bros. execs for shopping at Erewhon). All while investing $30B into media content annually and releasing over 30 films every year between Paramount and Warner Bros. Absolutely none of this sounds sustainable. Realistically, how long before Skydance goes bottoms up? I would like people who are not Ellison family puppets in charge of the movies, series and news I watch. Source: https://variety.com/2026/biz/news/skydance-stock-drops-warrants-paramount-investors-1236911580/