Skydance details cost cuts, sets streaming bundle for early next year
SKYD•Skydance outlined $6 billion in planned cost savings over three years and said it will launch an HBO Max-Paramount+ bundle early next year. The combined services have 203 million global subscribers, and Skydance said Warner Bros. film slate underperformance could reduce fourth-quarter profit by up to $200 million.
1. Savings and debt
Skydance said it aims to deliver $6 billion in cost savings over three years, with 30% expected in the first year. The company expects to cut at least $2.2 billion from corporate overhead and real estate, $1 billion from marketing and about $1.4 billion from technology costs. The acquisition left Skydance with $87 billion in gross debt and about $10 billion in cash.
2. Streaming plans
Skydance plans to launch a bundle of HBO Max and Paramount+ early next year. Together, the services reach 203 million subscribers globally. The company said it will stop disclosing quarterly subscriber figures and will provide full-year guidance for the combined company when it reports December-quarter results.
3. Quarterly results
Paramount revenue increased 5% to $7 billion in the quarter ended in September, before the Warner Bros. Discovery purchase was completed; Paramount+ revenue rose 21%. Skydance said underperformance of Warner Bros.' film slate could reduce fourth-quarter profit by up to $200 million.
