David Ellison's appointment of Kreiz brings cost-cutter to Paramount-Warner Bros Discovery
PSKY•David Ellison chose Mattel CEO Ynon Kreiz as co-CEO of Paramount-Warner Bros Discovery, tasking him with operational leadership and delivering $6 billion in merger cost savings. The combined company carries roughly $80 billion in debt.
1. Cost-cutting mandate
Kreiz will focus on operational efforts and day-to-day management alongside Ellison, who will oversee creative development and overall strategy. The combined company is carrying roughly $80 billion in debt and has promised $6 billion in merger cost savings.
2. Mixed record at Mattel
At Mattel, Kreiz oversaw more than $1.5 billion in savings through job cuts and a simpler manufacturing strategy. Mattel topped $1 billion in annual adjusted EBITDA in 2021, grew revenue 19% and saw its share price rise 24% that year. Since then, the stock has slipped 2% during his tenure, while the S&P 500 rose nearly 200%.
3. Integration and franchises
Paramount's antitrust settlement requires at least $300 million in additional annual domestic film spending, continued operation of both legacy studios' production lots and compliance with existing Hollywood union agreements. Kreiz is also expected to expand monetization of the combined company's intellectual property. At Endemol, costs fell 20% during his three-year tenure, while revenue and profits reportedly continued to decline.
