AceShowbiz - David Ellison has revealed an expansive plan to build a modern media empire centered on Warner Bros. Discovery through a landmark $110 billion deal. Speaking publicly for the first time about the acquisition, the Paramount CEO outlined how his company, supported by significant funding from his father Larry Ellison as well as a consortium of lenders, will acquire the much larger Warner Bros. Discovery.

The merger will create a colossal entity combining two major film studios—Paramount and Warner Bros.—alongside a diverse collection of television production studios. The new company will operate two leading streaming platforms, HBO Max and Paramount+, and boast a portfolio of cable and linear networks including CBS, TNT, CNN, MTV, Nickelodeon, and HGTV. This will position the combined company as a powerhouse in the pay-TV market, which, though shrinking, remains profitable. The deal also strengthens their presence in sports broadcasting and merges two giants in TV news, CNN and CBS.

David Ellison described the acquisition as a forward-looking move to reinvent the entertainment industry rather than merely consolidate assets. He emphasized the opportunity to leverage iconic studios and complementary streaming services with a global footprint and a rich library of intellectual property (IP). “Our goal from day one has been to build a next-generation media and entertainment company,” he explained. “This transaction will accelerate that vision by expanding our reach and enhancing our capacity to create compelling stories and experiences.”

Hollywood insiders have expressed reservations about the deal, fearing potential job cuts and production slowdowns similar to past industry upheavals. Addressing these concerns, Ellison assured that film and television production will continue unabated. He specifically highlighted the importance of preserving HBO’s unique identity and praised Casey Bloys and his leadership team.

“HBO is a crown jewel in this business, having brought to life some of the most powerful stories told over generations,” said Ellison. He added that HBO will maintain its independence and receive ample resources to sustain its creative excellence. The plan also includes licensing content to other platforms and producing third-party projects in their TV studios, aiming to grow both the studios and their popular programming.

However, Ellison confirmed that after the deal closes, HBO Max and Paramount+ will merge into a single major streaming platform, streamlining their direct-to-consumer offerings.

In terms of theatrical releases, Ellison committed to maintaining a 45-day window before films become available on premium video-on-demand (PVOD), aligning with recent industry standards. A strong advocate for the theatrical experience, he stated, “Franchises and major IP launches belong in theaters, period.” He underscored the importance of cinemas as the premier venues for creating lasting intellectual property.

While he acknowledged that television operates differently—with direct-to-consumer platforms capable of generating immediate cultural impact—he stressed that sustained audience engagement remains crucial for success in the streaming business.

The deal will saddle the new company with significant financial obligations. According to Paramount’s chief strategy officer Andy Gordon, the combined entity will hold around $79 billion in net debt. The company targets $6 billion in cost savings and aims to reduce leverage to three times earnings within three years post-closing.

This cost-cutting will inevitably lead to job reductions, although Ellison emphasized that most savings will not come from labor cuts, reiterating the commitment to maintaining production levels. Some real estate rationalization is expected, but they have no intention to sell assets, including cable channels, to reduce debt. “Like at Paramount, we believe in the assets we are acquiring,” Gordon stated firmly.

Notably absent from the investor call was Paramount’s president Jeff Shell, who is currently under investigation by an external law firm following allegations from a whistleblower that he shared confidential information regarding the company’s UFC deal. The call was instead led by David Ellison, Andy Gordon, and Paramount’s CFO.

With this unprecedented merger, David Ellison aims to reshape the future of entertainment by combining legacy studios, cutting-edge streaming services, and a vast array of content and networks. The company’s strategy promises to balance tradition with innovation while navigating the financial and operational challenges that lie ahead. Industry watchers will be closely following how this ambitious transformation unfolds in the coming years.