Paramount Global CEO David Ellison faced Warner Bros. Discovery executives for the first time Tuesday in a high-stakes town hall meeting, addressing concerns about job cuts, movie output, and the rocky path to the historic US$110 billion merger . The session at the Warner Bros. lot in Burbank came just two weeks after Paramount secured the deal, beating out Netflix in a fiercely competitive bidding war .
Ellison Addresses “Turbulent” Merger Process
Ellison stood on stage at the Steven J. Ross Theatre alongside current WBD CEO David Zaslav, who introduced the soon-to-be leader of the combined companies . About 150 senior executives attended in person, with more than 300 others joining via videoconference from across the US and international offices .
The Paramount CEO acknowledged the difficult road that led to this moment. “I know the bidding process has been turbulent, but that’s all behind us now,” Ellison told the room, according to multiple attendees . His comments referenced the dramatic turn of events in recent months, including Netflix’s initial agreement to acquire WBD assets in December before Paramount raised its offer to an irresistible level .
Warner Bros. Discovery had originally struck an US$83 billion deal with Netflix, but Paramount refused to back down. David Ellison, son of Oracle co-founder Larry Ellison, persistently raised his bid and even pursued legal action to obtain information about the Netflix offer . The strategy worked when Netflix declined to match Paramount’s final US$31-per-share cash offer, triggering a US$2.8 billion breakup fee .
Zaslav Introduces His Successor
Current WBD chief David Zaslav shared the stage with Ellison and offered a salute to CNN staff covering the war in Iran before handing the floor to the incoming leader . Zaslav’s presence signaled a willingness to support the transition, despite the merger effectively ending his tenure as an independent CEO .
The meeting comes after both companies’ boards unanimously approved the definitive merger agreement on February 27 . The deal values WBD at US$31 per share in cash and includes approximately US$29 billion in existing debt . The combined entity will have a total enterprise value of roughly US$110 billion .
Praising HBO and Studio Leadership
Ellison made a point to compliment the creative leaders in the room. He called HBO “the gold standard in television,” according to individuals with knowledge of his remarks . He also congratulated motion picture group heads Michael De Luca and Pamela Abdy, telling them, “You’ve made two of the best movies from last year. I won’t tell you which one” .
The Paramount CEO demonstrated detailed knowledge about various aspects of the business, from storytelling and HBO’s creative culture to sports rights and financial models . Attendees noted his understanding of why WBD’s many brands must remain distinct and well-managed .
Following the main session, Ellison had a private lunch with Casey Bloys, Chairman and CEO of HBO and HBO Max Content . Bloys’ current contract runs through 2027, and industry observers consider him a crucial executive that the combined company cannot afford to lose .
The 30 Movies Per Year Plan
A central topic of discussion was Ellison’s ambitious plan to release 30 theatrical films annually after the merger . He broke down the math for skeptical executives, noting that the Paramount lot is on track for 16 films per year while Warner Bros would contribute 14 .
“One insider remarked post-meeting, ‘You’ll need a lot of bodies to do that, as Warner Bros production has a small staff,’” according to a report . The comment highlighted underlying concerns about whether current staffing levels can support such aggressive output.
Ellison previously explained his vision in a CNBC interview, emphasizing that the combined company’s library of 15,000 films—including Harry Potter, the DC Universe, Mission Impossible, Top Gun, and The Godfather—creates an unmatched content foundation . He argued that scale in both content and streaming is essential to compete with industry leaders .
Addressing Layoff Fears Directly
The most sensitive topic involved potential job cuts. Ellison faced roughly a dozen pre-submitted anonymous questions, with many executives pressing for specifics about layoffs .
The Paramount CEO reiterated that the company expects US$6 billion in cost synergies from the merger, but he claimed most savings would not come from eliminating jobs . He pointed to other areas including technology stack rationalization when combining HBO Max and Paramount+, real estate consolidation, and procurement efficiencies .
“Look, we will absolutely have to rationalize the overall corporate overhead of the company, but that’s not the primary driver of the synergies in the deal,” Ellison said during his CNBC appearance days before the town hall . He emphasized that both the Paramount and Warner Bros lots would be retained, calling them iconic assets .
Mixed Reactions From Attendees
Reactions from WBD executives who attended ranged from skeptical to cautiously optimistic. One attendee who has experienced similar corporate transitions described the meeting as “perfunctory” . The same person said Ellison was “full of platitudes and not much more” and “really didn’t read the room and sidestepped any real talk of layoffs” .
Others offered a more positive assessment. “My take was, he was pretty honest and direct. He came off as genuine,” one WBD executive said . While acknowledging that “people wanted more specificity” about job cuts and the future operating structure, this source recognized that legal restrictions limited what Ellison could say .
Paramount is currently bound by “gun-jumping” laws that prevent companies from making detailed strategic decisions or forward-looking statements before a merger closes . Violating these rules could jeopardize regulatory approval.
CNN’s Future and Editorial Independence
Questions about CNN’s fate also emerged during the session. Ellison repeated comments he made the previous week, assuring that the news network would remain editorially independent .
The issue carries special weight given the Ellison family’s close ties to President Donald Trump . Critics have raised concerns that combining CNN with CBS News under one roof could concentrate media power in ways that reduce viewpoint diversity .
California Attorney General Rob Bonta has already signaled potential legal action, posting on X that “Paramount/Warner Bros is not a done deal” and that his office has “an open investigation” with plans to be “vigorous in our review” . Senator Elizabeth Warren also issued a statement calling the merger “an antitrust disaster threatening higher prices and fewer choices for American families”.
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The Road to Closing
The merger remains subject to regulatory approvals in the US and overseas, plus approval by WBD shareholders with a vote expected in early spring . Paramount projects the deal will close in the third quarter of 2026 .
If the transaction extends beyond September 30, WBD shareholders will receive a “ticking fee” of 25 cents per share for each additional quarter until closing . The combined company would generate US$69 billion in revenue and over US$10 billion in cash flow on a synergized basis, with Ellison projecting investment-grade status within three years .
Following the town hall, one Warner Bros attendee summarized the mood: “It was good there were no surprises” . For a deal born from a turbulent bidding war, that might be the best outcome Ellison could hope for at this stage.
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