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Skydance Confirms HBO Max–Paramount+ Bundle and $6 Billion Cost Plan After Merger

The company says the bundle will begin early in 2027 and kick off a one‑year tech convergence and broad savings drive to help address its large post‑deal debt.

Overview

  • Skydance said Monday in a shareholder letter that it will offer HBO Max and Paramount+ together as a single bundle starting in early 2027 and aims to align the two services' backend systems within about a year.
  • The company outlined a plan to deliver at least $6 billion of run‑rate cost savings over three years with roughly $2.2 billion from corporate overhead and real estate, $1 billion from marketing, $1.4 billion from technology, and $1.4 billion from procurement.
  • Skydance reported legacy Paramount third‑quarter results showing about $7 billion in revenue, $73 million in net income, and $1 billion in adjusted EBITDA and said full consolidated Warner‑Paramount financials and combined guidance will arrive with the December/Q4 report.
  • Management announced organizational moves and near‑term operational steps, including voluntary buyouts, the departure of James Gunn and Peter Safran from DC Studios, Jeremy Latcham’s appointment, and a decision to stop disclosing quarterly subscriber totals in favor of engagement and other KPIs.
  • The deal left Skydance with roughly $80–87 billion of gross debt, creating refinancing and execution risks that raise the stakes on the savings plan and could pressure further workforce cuts, slate changes or asset moves even as the company pledges to maintain a high level of annual content output.