Skydance unveils $6 billion three‑year cost‑cutting plan after Warner deal closure
Skydance reported third‑quarter revenue of $7.03 billion and announced a three‑year program to eliminate at least $6 billion of expenses following its merger with Warner Bros. Discovery. The plan targets $2.2 billion from redundant back‑office functions, $1 billion from marketing, and about $1.4 billion each from streaming‑technology integration and centralized purchasing. Management said the combined company is operating on an expense base above $50 billion and has already begun voluntary buyouts and executive departures. Shares fell roughly 3% in after‑hours trading.
Why it matters
The cost‑cutting program aims to improve profitability and free cash flow, which investors will watch as a test of the merger’s financial logic. The company’s $86.8 billion debt load makes the promised savings a key factor for balance‑sheet health.
Key facts
- 1Third‑quarter revenue was $7.03 billion, just below the $7.04 billion StreetAccount consensus. finance.biggo.com
- 2Adjusted EBITDA for the quarter was $1 billion, above the $913.5 million analysts had modeled. finance.biggo.com
- 3Net earnings were $73 million, or 45 cents a share on an adjusted basis. finance.biggo.com
- 4The cost‑cutting plan targets at least $2.2 billion from redundant back‑office and corporate functions. finance.biggo.com
- 5The plan targets at least $1 billion from marketing and promotional spending. finance.biggo.com
- 6The plan targets about $1.4 billion each from streaming‑technology integration and centralized purchasing. finance.biggo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.