LOS ANGELES: Skydance Corporation faces about $80 billion in net debt after acquiring Warner Bros. Discovery and plans to spend more than $30 billion annually on content, Variety reported Wednesday.
Chief Executive David Ellison must also meet the company’s pledge to produce or acquire 30 theatrical films a year by 2028.
However, Variety counted just 22 releases scheduled for that year across Paramount and Warner Bros. Many projects have yet to begin production, the publication reported, including “Gremlins 3”.
Skydance Chief Financial Officer Dennis Cinelli defended the spending strategy in an interview with Variety. “Content is our asset,” Cinelli said, arguing that continued investment could support revenue growth and cash flow.
Meanwhile, the company faces growing pressure to reduce costs. Industry insiders told Variety that layoffs are expected before the end of 2026 and could continue into the first quarter of 2027.
Those sources expect savings from Skydance’s earlier Paramount acquisition to approach $3 billion, exceeding an initial $2 billion estimate.
Read: Paramount Skydance Files Lawsuit Over Warner Bros Deal With Netflix
Variety cited financial projections suggesting the combined company’s annual interest expenses could exceed $6 billion in 2027.
MoffettNathanson analyst Robert Fishman warned in an October 23 research note that deeper cuts to television spending could accelerate revenue losses. Variety reports that Skydance also faces pressure from declining traditional television subscriptions.
Read: Warner Bros. Discovery Rejects Paramount Skydance Takeover Bid
Ellison has reshaped the management team since the Warner Bros. takeover. On Monday, he announced that producer Jeremy Latcham would replace James Gunn and Peter Safran as head of DC Studios.
Co-Chief Executive Ynon Kreiz oversees daily operations, while Cinelli manages the company’s finances. Despite speculation about possible new investors, Cinelli told Variety that Skydance was not seeking additional capital.
At its Monday earnings announcement, Skydance outlined plans to offer HBO Max and Paramount+ together in early 2027. The company also aims to combine both streaming services into a single platform by 2029.
With additional input from Variety
