Paramount Skydance and Warner Bros. Discovery secured key U.S. regulatory and legal approvals for their 110 billion dollar merger after a federal court modified a no-close order. David Ellison appointed former Mattel CEO Ynon Kreiz as co-CEO to oversee daily operations, while the combined studio agreed to release at least 30 theatrical films annually.
A California federal judge cleared the way for the transaction by signing off on an agreement that resolves a lawsuit brought by 12 state attorneys general who opposed the union according to reporting on the legal settlement. The resulting mega-studio, anchored by Ellison’s production banner, brings together two major Hollywood libraries under terms that bind the company to specific theatrical output and operational obligations set by a consent decree. Global media and entertainment group Paramount Skydance operates under the ticker NasdaqGS:PSKY.
Ynon Kreiz Joins David Ellison as Co-CEO
Ellison recruited former Mattel chief executive Ynon Kreiz to serve alongside him as co-CEO starting October 5. In a memo distributed to employees, Ellison formally welcomed his new partner ahead of the transaction’s expected closure.
Once the WBD transaction is finalized, I always planned to partner with an executive of Ynon’s caliber. Our skills and experience complement each other, and we share a vision for what this company can become.
David Ellison, via Business Insider
Kreiz arrives with a notable track record in corporate turnarounds. Before his tenure at Mattel, his extensive leadership experience in the media and entertainment industry included leading Fox Kids Europe from London before selling the business to Disney in 2002, serving as CEO of Endemol Group, and taking over as CEO of Maker Studios in 2012 before selling that user-generated video network to Walt Disney Co. for 500 million dollars in 2014. At Mattel, where he joined the board in 2016 and became CEO in 2018 after the toy giant had cycled through four CEOs in four years, he steered the manufacturer through a revenue downturn and guided the adaptation of iconic brands like Barbie, Hot Wheels, Fisher-Price, and American Girl into cinematic projects, most notably the 2023 Barbie feature film that grossed over 1.4 billion dollars globally.
SEC Filing Reveals Compensation Terms for Five-Year Contract
Financial details of the leadership appointment emerged through an SEC filing released by Paramount. Kreiz signed an initial five-year employment agreement that grants him a substantial financial package totaling more than 46.5 million dollars in his first year.
The compensation structure scales upward once the Warner Bros. merger closes:
- Signing Bonus: A one-time award of fully vested restricted stock units valued at 31.5 million dollars.
- Base Salary: Set at 3.5 million dollars initially, rising to 5 million dollars the day after the merger closes.
- Annual Bonus: Targeted at 1.5 million dollars pre-closing, stepping up to 4.9 million dollars afterward.
- Equity Awards: Includes 1.25 million shares of Class B common stock pre-closing, up to 5.1 million dollars in prorated RSUs following the merger, and an annual equity award of 20.1 million dollars beginning on the first anniversary of his contract according to regulatory disclosures.
Legal Settlement Mandates Theatrical Releases and Editorial Oversight
The court-approved consent decree settled opposition from 12 state attorneys general by establishing strict operational boundaries for the combined studio. Among the binding conditions, Paramount pledged to release a minimum of 30 films annually in theaters while creating an editorial independence board. Streaming operations are also slated for reorganization.