David Ellison's appointment of Kreiz brings cost-cutter to Paramount-Warner Bros Discovery
PSKY•David Ellison named Mattel CEO Ynon Kreiz co-CEO of the combined Paramount-Warner Bros Discovery, tasking him with operational management and delivering $6 billion in merger savings. The combined company carries roughly $80 billion in debt.
1. Cost-cutting mandate
Kreiz will oversee operational efforts and day-to-day management alongside Ellison, who will lead creative development and overall strategy. He is tasked with delivering $6 billion in savings as the combined company carries roughly $80 billion in debt.
2. Mattel track record
At Mattel, Kreiz led more than $1.5 billion in savings through job cuts and a simpler manufacturing strategy. The company topped $1 billion in annual adjusted EBITDA in 2021 and recorded 19% revenue growth, but its stock has slipped 2% during his tenure, compared with a near 200% gain in the S&P 500.
3. Integration challenges
Paramount's antitrust settlement requires at least $300 million more in annual domestic film production spending, continued operation of both studios' production lots and compliance with existing Hollywood union agreements. Kreiz is also expected to expand monetization of the combined company's franchises across business areas.
