Skydance Outlines at Least $6 Billion in Planned Cost Savings

According to CNBC, Skydance plans to achieve at least $6 billion in cost savings over the next three years by combining operations across its businesses, which have an expense base of more than $50 billion. The company projected at least $2.2 billion in reductions from eliminating redundant corporate functions and rationalizing office space, at least $1 billion from streamlining marketing and promotional spending, around $1.4 billion from unifying streaming operations and technology, and another $1.4 billion from optimizing third-party spending and consolidating purchasing. Skydance said its existing Paramount cost-reduction program is on track to deliver more than $2.7 billion in run-rate efficiencies by the end of 2026. In the third quarter, legacy Paramount Skydance reported revenue of $7.03 billion, roughly in line with StreetAccount estimates of $7.04 billion, and adjusted EBITDA of $1 billion, above estimates of $913.5 million. Adjusted earnings per share were 45 cents. The results excluded Warner Bros. Discovery, whose acquisition closed after the end of the third quarter.