Paramount Skydance (SKYD) news that moved the stock

What happened

Puck News reported on Friday, Oct 9, citing people familiar with the matter, that Netflix is planning to cut about 5% of its workforce, with an announcement expected as early as next week. Netflix declined to comment on the report. With roughly 16,000 full-time employees at the end of last year, a 5% reduction implies on the order of 800 positions. No specific divisions or regions were identified in the initial report.

What happened

Paramount Skydance completed its acquisition of Warner Bros. Discovery this week — reported at about $110 billion including debt — and the combined company, named Skydance, began trading on the NYSE under ticker SKYD. David Ellison is chairman and CEO with former Mattel chief Ynon Kreiz as co-CEO; David Zaslav, who led WBD since 2022, stepped down, while CNN chief Mark Thompson was asked to stay. The combination unites Paramount Pictures and Warner Bros. as two film studios, CBS and CNN as news networks, and Paramount+ and HBO Max under one roof, with a committed slate of at least 30 theatrical films and more than 180 TV shows and series per year. Netflix, which lost the bidding war in February, collected a $2.8 billion termination fee funded by Paramount.

What happened

Paramount Skydance announced Tuesday, Oct 6, it has completed its $110 billion acquisition of Warner Bros. Discovery, forming one of the largest entertainment companies in the world. The combined company becomes Skydance Corporation and its Class B shares begin trading on the NYSE under the ticker SKYD (replacing PSKY on Nasdaq) today. David Ellison remains chairman and CEO; Ynon Kreiz, the former Mattel chairman/CEO, joins as co-CEO to run day-to-day operations and lead integration. The merged entity owns Paramount Pictures, Warner Bros. studios, streaming platforms Paramount+ and HBO Max, networks including CBS, CNN, MTV, TBS, Comedy Central and Food Network, and franchises like the DC Universe, Game of Thrones, Lord of the Rings and Yellowstone. The company carries a projected debt load north of $80 billion and has committed to $6 billion in cost savings within three years.