Skydance targets $6 billion in cost cuts, plans HBO Max-Paramount+ bundle for early 2027
The newly merged media group expects to realise 30% of its savings in the first year, including $1 billion in marketing cuts, while preparing to combine HBO Max and Paramount+ within roughly a year
by
Published: Nov 10, 2026 8:24 AM | 2 min read
Follow Us
- Skydance plans to achieve $6 billion in cost savings over three years post-acquisition of Warner Bros Discovery, with 30% expected in the first year.
- The savings will come from various areas, including $2.2 billion from corporate overhead, $1 billion from marketing (a 20% reduction), and $1.4 billion from technology costs.
- The company will launch an interim streaming bundle of HBO Max and Paramount+ in early 2027, with a full integration aimed for within a year.
- Skydance will stop reporting quarterly subscriber numbers, shifting focus to metrics like revenue and profitability, while also warning that Warner Bros' film slate may impact fourth-quarter profits by up to $200 million.
Skydance has detailed plans to deliver $6 billion in cost savings over three years following its acquisition of Warner Bros Discovery, while announcing an interim streaming bundle combining HBO Max and Paramount+ for early 2027.
The company expects to realise around 30% of the savings in the first year. At least $2.2 billion will come from corporate overhead and real estate, about $1 billion from marketing, representing a roughly 20% reduction, and around $1.4 billion from technology costs.
The merger has left Skydance with approximately $87 billion in gross debt and about $10 billion in cash, putting significant pressure on the company to improve profitability while continuing to invest in content.
Streaming is expected to be one of the main growth engines. Paramount+ revenue increased 21% in the third quarter, while Paramount+ together with HBO and HBO Max reaches around 203 million subscribers globally.
Skydance plans to launch a bundled HBO Max and Paramount+ offering early next year as an interim step before integrating the two services more fully. CEO David Ellison said the company aims to complete that merger within roughly a year.
The company also said it will stop reporting quarterly subscriber numbers, following Netflix’s move toward metrics such as revenue, profitability and engagement rather than raw subscriber additions.
For the September quarter, before the Warner Bros Discovery transaction closed, Paramount revenue rose 5% to $7 billion. Skydance said it would provide full-year guidance for the combined business when it reports December-quarter results.
The company also warned that Warner Bros’ underperforming film slate could reduce fourth-quarter profit by as much as $200 million.
For advertisers and agencies, the most consequential part of the restructuring may be the planned $1 billion reduction in marketing costs.
At the same time, combining HBO Max and Paramount+ could create a larger unified streaming inventory pool, potentially reshaping how the company packages audiences, ad products and sponsorship opportunities across its entertainment portfolio.
Read more news about Television Media, Digital Media, Advertising India, Marketing News, PR and Corporate Communication News
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook YouTube & Google News
