Paramount Says $6 Billion in Expected Cost Synergies Acquiring WBD Will Not Include Layoffs or Content Production Reduction
March 2, 2026
Following the $110.9 billion enterprise value acquisition of Warner Bros. Discovery, Paramount Skydance is facing $79 billion in net debt upon closing of the massive media transaction.
To help cut that debt, Paramount is eyeing upwards of $6 billion in cost synergies over the first three years of the merger — cost cutting that will not include layoffs or a reduction in content production, according to chief strategy officer Andrew Gordon.
Paramount has pledged to release 15 theatrical titles this year, up from eight last year, which combined with 15 titles from Warner Bros. Pictures, would result in 30 box office movie releases going forward.
Speaking on the March 2 special investor call, Gordon said the operating cost reductions would come from consolidating streaming technology stacks, i.e., Paramount+, Pluto TV, Discovery+ and HBO Max, among others; expanding global business services and procurement efficiencies; re-evaluating both companies’ global real estate footprint and corporate overhead; improving spending on marketing, including agencies and related tools; and integrating Oracle’s (founded by Larry Ellison) “enterprise resource planning” software and other corporate IT systems.
“These are just few examples of where we believe we will find meaningful synergies as we unite these storied companies,” Gordon said.
CEO David Ellison said the combination of Paramount and WBD’s linear businesses, which include CBS, CNN and TNT, would also expect to boost cash flow, drive efficiencies and help manage market pressures.
The executive said he has no plans to spin-off the linear assets similar to what Comcast did with Versant, and what WBD had planned to do pre-merger with Discovery Global.
“The unified platform will offer advertisers more compelling and impactful opportunities, including in marquee U.S. and international sports leagues and events like the NFL, UFC and internationally, the home of the Olympics,” Ellison said.