Paramount completed its massive, controversial acquisition of entertainment giant Warner Bros. Discovery on Wednesday to form hypercapitalist conglomerate Skydance Corp., the brainchild of failed actor and nepo baby CEO David Ellison.
Skydance’s news release didn’t mention the brands’ video game divisions, but in an internal email obtained by Variety, Skydance Corp. President Andy Gordon confirmed Warner Bros. Games and Paramount Games will merge into one studio.
The newly formed gaming team will reportedly oversee projects based on prominent Paramount and WB properties, which range from beloved classics like The Godfather, Star Trek, and Mission: Impossible to cult TV titles like SpongeBob SquarePants, South Park, and Avatar: The Last Airbender.
Developers affected include WB Games’ Montreal and Boston teams, Avalanche Software (Hogwarts Legacy), NetherRealm Studios (Mortal Kombat), Rocksteady Studios (Batman: Arkham), and TT Games (LEGO games).
“We’re investing in our future growth engines alongside our core ambitions in TV, Film and direct-to-consumer: Games, Experiences, Consumer Products, and Publishing,” Gordon explained in the memo.
“These are core pillars of our strategy to build engagement and fandom in both the physical and digital worlds. We want to meet consumers where they watch, play, and engage. At the same time, we see opportunities to build on DC Comics’ storytelling and expand our e-commerce offerings to connect fans with the brands they love.”
Skydance CEO David Ellison names entertainment monopoly’s new leaders
Ellison introduced other Skydance Corp. leaders at an assembly at Warner Bros. Steven J. Ross Theatre on Wednesday. Among them was Skydance’s now co-CEO Ynon Kreiz, a man allegedly called an “intense dude” by a former Mattel CEO. Kreiz will reportedly “make the decisions on cost and jobs cutting.”
Kreiz will “establish Skydance as the premier Hollywood content engine […] accelerate our integrated DTC platform […] and optimize our highly profitable linear TV portfolio, reaching audiences globally across every entertainment vertical, anchored by CBS, the crown jewel of broadcast television.”
Gordon also said Paramount Games President Tony Driscoll will similarly lead Skydance’s “games and experiences, in addition to leading corporate strategy and development.” In his own memo, Driscoll outlined early plans for his team.
“We immerse our guests in theme parks, resorts, restaurants, retail, studio tours and more. We immerse our players in action, adventure, combat, competition and creativity, from ‘Batman’ to ‘SpongeBob,” he shared. “And no matter your role on this team, you are a creator, builder, operator, and steward of those worlds.”
“We have the opportunity to create amazing spaces where friendships are formed and communities grow. That is only possible because of your hard work and talent. Whether it’s on Zoom or in person, my first priority in the coming weeks is meeting as many of you as I can from LA to London, Montreal to Tokyo, and beyond.”
Ellison also introduced Gordon, CFO Dennis Cinelli, co-chairs Casey Bloys and George Cheeks, Skydance motion picture group co-chairs Dana Goldberg and Josh Greenstein, and RedBird’s Gerry Cardinale.
“We will have plenty of opportunities to develop new businesses, products, games and experiences to engage fans wherever they are and be where the consumer is going,” Kreiz said.
Gordon’s memo also revealed other staffing decisions:
- “Josh Silverman will be president of global products and publishing
- “Jim Sterner will remain chief people officer and continue to lead HR operations
- “Jose Turkienicz will continue as president of global operations, including real estate, procurement, and studio operations, with a “focus on simplifying processes and improving service to our businesses so teams can bring ideas to market faster”
- “Jeff Silberman will be Gordon’s chief of staff in addition to continuing as executive vice president of corporate strategy.”
What’s next for Skydance?
Unfortunately, such concentrated industry power likely means layoffs. Brand leaders confirmed that the merger means they will soon face “difficult decisions.”
“Integrating two companies will bring change, including difficult decisions that affect our workforce,” Ellison and Kreiz wrote in a memo obtained by Variety. “We are committed to handling this process thoughtfully and respectfully.”
“Bringing together two companies of this size and complexity will require difficult decisions. There will be changes, and there will be impacts. I’m not going to pretend otherwise,” Ellison explained.
“What I can promise you is that we will move through those decisions as quickly and thoughtfully as we can. We will communicate directly. We will tell you what we know when we know it. And we will not allow a prolonged integration process to distract us from the reason we brought these companies together in the first place: which is to build the next-generation media and entertainment company.”
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