movies
Skydance Co-CEOs Insist Its Massive Debt Is Manageable
Skydance co-CEOs David Ellison and Ynon Kreiz sought to dial down Hollywood jitters that the company’s massive and expensive-to-service debt load approaching $80 billion will force them shortchange production.
“We have a business plan. There’s a complete financial envelope to how we’re going to run the business, and content is a spend, but you can also see it as an investment because it’s also going to drive growth,” Kreiz said during a press conference Tuesday to mark the close of the Paramount-Warner Bros. Discovery merger. Skydance is looking to annual content spend of $30 to $40 billion.
“As a whole, yes, we have debt. But we expect to reduce the leverage. It’s really about the leverage ratio — what does the debt mean relative to profit. We intend to bring it down as we’ve said publicly two, three times, by 2029 [while] investing in content and at the same time achieving synergies in other parts of the company,” said the former Mattel boss who joined Ellison’s Skydance last week.
“It’s all part of a multi-year plan that will drive growth and expansion and increase cash flow over time, that will allow us to bring debt down, improve our leverage ratio, and continue to run the business for long-term growth,” he added.
Ellison swatted down the argument that “you can’t actually operate more efficiently while investing more in content.”
“I’d just point to the last year, what we’ve done at Paramount. We’ve overdelivered on synergies — $2.7 billion, basically, by the end of this year from an initial announcement of $2 billion. We did that while doubling the film slate at Paramount from eight films to 15, greenlighting four new and returning series, and growing EBITDA [earnings before interest, taxes, depreciation and amortization, a key metric] significantly year-over-year.”
So, “you actually can do both things simultaneously. We’ve measured this incredibly carefully,” he said.
The combined entity will have $70 billion in revenue, Ellison noted, and the plans is to ultimately grow to “a $10 billion-dollar cash flow company … We absolutely have the ability to manage the debt and de-lever while investing for growth.”
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movies
George Cheeks Teases Skydance TV Strategy In Memo To Staff
George Cheeks, who has a shiny new role in the Skydance corporation, called the first day of the combined Paramount and Warner Bros. Discovery the “start of a new chapter”.
In a memo to staff, Cheeks, who is now Co-Chair and Chief Content Officer, Skydance TV, teased the strategy of the new division that now includes CBS, Warner Bros. Television Studios, CBS Studios and Paramount Television Studios, CBS News, CBS Sports, TNT Sports and Warner Bros. Discovery Sports.
“By bringing together Paramount and Warner Bros. Discovery, we’ve assembled a remarkable collection of television brands, networks and studios, backed by some of the most talented teams in the industry,” he wrote.
Cheeks did not particularly go into detail on the new structure and his direct reports in the note, but Deadline revealed a few days ago that Channing Dungey, who was Chairman and CEO, Warner Bros Television Group and US Networks, will now also oversee the Paramount cable networks such as MTV, Comedy Central, Nickelodeon and BET as well as VH1, Paramount Network, TV Land, CMT, Pop TV and Logo TV.
The former NBCUniversal exec, who is also in charge of CBS Studios, run by David Stapf, and Skydance TV, run by Matt Thunell, called the Skydance Television group an “unmatched mix of networks, studios, platforms and programming genres.”
He said that the TV studios, which will remain separate, for now, at least, will continue to “create franchises, premium originals and unscripted hits that entertain viewers of all ages and interests”.
He also lauded CBS, which he said “remains a cornerstone”. He praised the sports operations, which will now be run by CBS Sports boss David Berson, with TNT Sports chief Luis Silberwasser exiting.
Cheeks also called CBS News, run by editor-in-chief Bari Weiss, “one of the most important brands in journalism, delivering national and worldwide news across broadcast, streaming and digital”.
The cable side now features more than 50 channels. “There are too many standout shows to name individually, but one thing is clear: the breadth and quality of programming across this group is unrivaled, spanning some of the most watched, most acclaimed and most award-winning in the industry,” he added.
Cheeks admitted that staff is eager to hear more about the leadership, structure and strategy and said that more details will be shared soon.
“This is a moment of transition. With that comes uncertainty. The stress of this is not lost on me. Expect to hear more on our structure and priorities in the weeks ahead,” he wrote. “The work ahead is significant, and so is the opportunity. I am energized by the possibilities. Together, we’ll build on our collective strengths to create an even stronger future.”
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movies
‘Dancing With The Stars’ Season 35, Week 4 Recap: Mariah Carey Night
SPOILER ALERT! This post contains details from Tuesday night’s episode of Dancing with the Stars.
We’re officially a month into Season 35 of Dancing with the Stars, and the contestants are starting to feel the pressure of the competition.
After Taylor Hanson and Britt Stewart were eliminated last week (which shook the remaining couples awake as they were definitely not the worst ones by a mile), the competitors are all taking on Mariah Carey in Week 4.
Reality star Ciara Miller with Brandon Armstrong. The reality star really wanted to earn some 7s for her jazz routine to “Emotions” and prove she’s meant to last in this competition. Carrie Ann Inaba called it her “best dance so far, my dear.” Get those 7s, girl! SCORE: 21 out of 30
Paralympian Ezra Frech with Daniella Karagach. These two came out swinging with another fiery performance, this time dancing a rumba to “Anytime You Need a Friend.” Derek Hough was thoroughly impressed: “It was seriously sophisticated. It was.” SCORE: 24 out of 30
Actor Harry Shum Jr. with Jenna Johnson. They’re looking for another set of solid scores from the judges for their tango to “It’s Like That.” This week, Jenna goes on the Grey’s Anatomy set with her celeb partner to practice in between takes. Fun fact: Harry danced in the original music video for this song, too. “A red hot tango from a man on a mission! Sharp as a knife. So intense. I mean, it gave me whiplash!” Bruno Tonioli says. Bonus points for the Glee reunion with former DWTS champ Amber Riley back in the ballroom to sing for this one. SCORE: 24 out of 30
Actress Jenna Dewan with Val Chmerkovskiy. Jenna is frustrated by her feedback from the judges, but she wants to take their critiques seriously. This week, she wants to focus on showing a softer and slower side to her dancing with a rumba to “My All.” Watch out Season 35, Jenna Dewan found her groove! All Derek Hough could do was stand up and clap. “All I have to say is: There she is.” SCORE: 24 out of 30
Reality star Tyler Cameron with Sharna Burgess. Tyler managed to skate by last week thanks to Taylor’s elimination, but he seems to know he needs to kick things into high gear if he wants to make it any further in the competition. This week, he and Sharna danced a foxtrot to “#Beautiful.” Color, well, nearly everyone surprised! The man can move! “The improvement is incredible. You should be proud of yourself,” Bruno tells him. SCORE: 21 out of 30
Reality star Maura Higgins with Mark Ballas. The Traitors duo is finding their groove, and Maura is settling into her clear natural affinity for dance. This week, they are taking on a waltz to “If It’s Over.” She’s already danced in frame, but now she wants to improve and go for higher scores. “I feel like right now the world needs that kind of beauty!” Carrie Ann exclaimed. SCORE: 25 out of 30 (a 9 from Carrie Ann! Maura falling to the ground in disbelief says it all.)
Late-night sidekick Guillermo Rodriguez with Whitney Carson. These two took a trip to New York City for rehearsals this week, since Guillermo is there for his day job. They are dancing a samba to “Obsessed.” As Witney says, “nothing can really prepare you for the samba.” He’s really trying, though. And hey, the steps he did (few as there were) were in time! “Listen, that wasn’t quite a samba, but it was 100% Guillermo,” Derek says. SCORE: 15 out of 30
Savannah Bananas midfielder Jackson Olson with Emma Slater. Jackson took a little break from rehearsals this week to celebrate his birthday, but he’s still putting his all into coming back strong after some lukewarm feedback from the judges in Week 3. He’s performing a waltz to “Without You.” There must be something in the air this week, because he looked like a completely different dancer. “I can see you almost for the first time,” Bruno tells him. SCORE: 21 out of 30
Actress Tatyana Ali with Jan Ravnik. The Fresh Prince star is living ut a childhood dream dancing to Mariah Carey. And she’s got the in-the-know pro this week, because Jan has toured with the pop star. They’re doing a jazz dance to “Fantasy.” After last week, can anyone be surprised that she kills it? Carrie Ann wanted her to have more energy for a jazz routine. Derek and Bruno agree. “But overall, I just love seeing what you’re doing,” Derek says. SCORE: 20 out of 30
Comedian and podcaster Connor Wood with Rylee Arnold. Rylee, Connor isn’t sure if you’ve noticed, but you tend to include grinding choreography in all of your routines. Well, the tradition continues this week, because they’re dancing a rumba to “Touch My Body.” I mean, what’s a girl to do? Unfortunately, the hips were not moving, but he did do a nice worm. “There’s a lot of moments where you’re playing it safe,” Derek says. Bruno loved it. “Frisky!” SCORE: 19 out of 30
Actress Julia Stiles with Ezra Sosa. Julia is riding high after receiving her highest scores last week. She’s really got to impress this week with a Viennese waltz to “Vision of Love” if she wants to keep the positive momentum going. “For me, that was a breakthrough,” Carrie Ann said. Well, ok then! SCORE: 21 out of 30
Olympian Amber Glenn with Pasha Pashkov. It’s a lot of pressure to close out the night, especially as the couple who walked away with the first 8s of the season and tied at the top of the leaderboard last week. This time, they’re dancing a rumba to “Hero.” Pasha calls the dance “the ultimate test” of their synchronicity as a couple. Turns out, they didn’t need to worry at all. “You never lost the ability to fill the room,” Bruno says. SCORE: 23 out of 30
Who goes home?
The competition is getting tough, so there’s not very many weeks that Guillermo can keep getting away with this, but somehow Ciara Miller and Brandon Armstrong go home on Tuesday night.
Next week is Super Bowl Night. Stay tuned to see what that means.
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movies
Paramount Pictures Co-Chairs Josh Greenstein & Dana Goldberg’s Day 1 Memo
Paramount Pictures Co-Chairs Dana Goldberg and Josh Greenstein sent out a Day 1 memo to the troops at the Paramount and Warner Bros. Motion Picture units.
Among the priorities, we understand, is keeping legacies of both studios alive. In the memo, Goldberg and Greenstein say they see themselves as “stewards of two of the most storied studios in Hollywood history.”
They also explained that the companies’ respective film divisions will operate independently.
“We have organized our film divisions around the movies themselves. Paramount Pictures and Warner Bros. Pictures will continue to build and release their slate of films separately, under those brands. This means that each Warner Bros. Pictures or Paramount Pictures film you see will carry its respective logo. They are the cornerstone labels and will remain the homes for our largest commercial and filmmaker-driven projects. DC Studios, New Line Cinema and Paramount Primal will continue as distinct labels with specific mandates. Our animation and specialty labels, including Republic Pictures and Warner Bros. Clockwork, will also operate independently.”
A more immediate priority for the duo — who have been working on getting the Paramount motion picture unit into financially reasonable shape — is getting under the hood of Warner Bros.
Here is the full text of their memo:
Dear teammates,
Today marks Day One of a new chapter, and we are proud to share it with all of you. It’s an immense privilege to make movies, and an even greater honor to do so as the stewards of two of the most storied studios in Hollywood history. We take that responsibility seriously and have enormous respect for the people, work and relationships that have made these studios what they are today.
At the heart of that legacy is a simple belief that movies are best seen together, on a big screen. A century later, that human connection is still alive. Going to the movies is a communal tradition, where a story becomes a moment we carry together. That tradition is thriving, and David Ellison is making one of the biggest investments in its future. We believe in it, and we are all in.
Our mission is to build on these studios’ legacies as homes for the greatest filmmakers and storytellers. We will embrace their vision, back it with the best marketing and distribution in the business, and keep creating cultural moments that shape generations. That means taking bold swings, alongside crowd-pleasers, with a steady willingness to push boundaries.
We have organized our film divisions around the movies themselves. Paramount Pictures and Warner Bros. Pictures will continue to build and release their slate of films separately, under those brands. This means that each Warner Bros. Pictures or Paramount Pictures film you see will carry its respective logo. They are the cornerstone labels and will remain the homes for our largest commercial and filmmaker-driven projects. DC Studios, New Line Cinema and Paramount Primal will continue as distinct labels with specific mandates. Our animation and specialty labels, including Republic Pictures and Warner Bros. Clockwork, will also operate independently.
We won’t pretend a combination of this size comes without change. We know you will have questions, and we will respond to as many as we can, though we won’t be able to answer everything today. In the months ahead, we will spend time with the teams across both studios, listening, learning and sharing updates along the way. Your experience and perspective will be essential in shaping what comes next. What we can say with confidence is that our purpose is simple, and it starts with the work in front of us.
Our collective job is to give teams and filmmakers the support they need to do their best work, and to make movies that entertain and endure. The opportunity ahead of us is extraordinary, and we look forward to building on everything you have accomplished.
Together, we are going to build something special.
Long live the movies,
Dana & Josh
The missive comes just hours after Skydance co-CEO David Ellison sent his own memo.
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