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David Ellison's Plan, Layoffs and $30 Billion Content Spend

Variety • November 11, 2026 • business

Key Points:

David Ellison and Skydance face significant pressure to produce or acquire 8 films by 2028 to meet their annual target of 30 movies, crucial for justifying their $111 billion acquisition and managing $80 billion debt.
Skydance plans a major streaming push in early 2027 by bundling HBO Max and Paramount+ at a competitive price, aiming to integrate both platforms by 2029 and potentially retire the Paramount+ brand.
The company’s vast content library and streaming subscriber base position it as a major player, but it remains heavily reliant on the declining linear cable TV business for cash flow, posing financial risks amid shifting industry trends.
Cost-cutting measures are underway, targeting up to $3 billion in savings through layoffs, reduced spending on hospitality, marketing, and vendor contracts, while balancing the need to invest heavily in new content production.
Negotiations for high-profile projects like the “Barbie” sequel highlight the tension between creative talent demands and Skydance’s financial constraints, underscoring the challenge of sustaining creativity amid massive debt and operational restructuring.

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