David Ellison has emerged victorious. And he’s boldly — or arrogantly, if you prefer — decided to name the entertainment giant that he’s bolted together Skydance Corp., nodding to the original name of his film production firm that has swallowed up two Hollywood studios over the past 14 months.
Defying skeptics and beating back opponents, Ellison has harpooned his white whale in buying Warner Bros. Discovery. Now he has to prove that the $111 billion mega-merger can become a profitable entertainment powerhouse, and not just a vessel that will get sucked under by a massive whirlpool of debt.
As the closing of the deal — set to occur Tuesday, Oct. 6 — became a certainty, entertainment industry insiders started to come to grips with the reality that the enlarged company is a new and unpredictable force in town. The deal has been polarizing for the creative community, with many boldface names going public in their opposition to the merger. The new leadership team that Skydance is assembling under the direction of Ellison and Ynon Kreiz, just recruited from Mattel to serve as co-CEO, has to navigate that dynamic. And they must do it while walking a tightrope on Wall Street to pay down debt and grow profits across film, linear TV and streaming.
“They need to move as quickly as possible to get the leverage down,” says Jawad Hussain, managing director at S&P Global. “The biggest hurdle and the biggest thing we’re going to be keeping our eye on is integration and execution.” Two years ago, Hussain says, Skydance Meida was a small company that turned out a few films a year. “Now it’s managing one of the largest media companies. It’s not necessarily an easy task.”
It’s all been a whirlwind. On the morning of Sept. 30, Ellison still didn’t know if it was a done deal.
He had spent more than a year in his relentless pursuit of acquiring Warner Bros. and HBO. The WBD board rejected his takeover…