Paramount-WBD merger savings to come from non-labor costs, Cardinale says
Gerry Cardinale said most of the $6 billion in expected cost savings from the Paramount-Warner Bros. Discovery merger will come from non-labor costs, not layoffs.
Most of the $6 billion in expected cost savings from the Paramount-Warner Bros. Discovery merger will come from non-labor costs rather than layoffs, Paramount board member Gerry Cardinale said at the Bloomberg Screentime conference.
Cardinale said the companies will unify their direct-to-consumer tech stacks, as was already done with Paramount+, Pluto and BET+, and will do the same with HBO. He added that real estate and the lack of an enterprise resource planning system are areas of focus for cost-cutting.
The $110 billion merger is due to close Tuesday, Cardinale said. He praised David Ellison's leadership and rejected the idea that Ellison's success comes from nepotism.
The deal followed a lengthy legal battle and a year of negotiations involving multiple suitors, as reported by Deadline. Paramount was bought in 2025.
Separately, Ben Affleck founded the AI company Interpositive and later sold it to Netflix.
Quick answers
Where will the $6 billion in cost savings come from?
Most will come from non-labor costs rather than layoffs, according to Gerry Cardinale.
When is the Paramount-Warner Bros. Discovery merger expected to close?
Cardinale said the $110 billion merger is due to close Tuesday.
What tech stacks will be unified?
The companies will unify their direct-to-consumer tech stacks, as was already done with Paramount+, Pluto and BET+, and will do the same with HBO.