Skydance faces content targets and debt pressures as it integrates Paramount and Warner Bros.

Skydance Media, now controlling Paramount and Warner Bros., said it must acquire or produce eight additional films in 2028 to meet its annual goal of 30 new titles, a benchmark tied to the $111 billion acquisition that created the conglomerate. So far, 22 films slated for 2028 have been scheduled, including projects such as “Gremlins 3,” a rumored Joan of Arc biopic by Baz Luhrmann, and an untitled Duffer brothers film, though many have not yet begun production.

Chief financial officer Dennis Cinelli told Variety that the company views its $30 billion-plus content spend as an investment rather than an expense, emphasizing that content is an asset that drives growth across theatrical, television and streaming platforms. The firm plans to launch a bundled streaming offering that combines HBO Max and Paramount+ in early 2027, with a fully integrated platform expected by 2029, potentially retiring the Paramount+ brand.

Skydance’s portfolio now includes about 205 million streaming subscribers in more than 100 territories, a library of roughly 15 000 films and over 100 000 hours of TV series, and a linear TV segment anchored by CBS and 55 cable networks such as CNN, TNT, TBS and Nickelodeon. Analysts note that linear TV revenue continues to decline, citing Paramount’s Q2 TV revenue drop of 9% to $3.1 billion, though the segment still contributed all of the company’s adjusted earnings for that quarter.

The company’s ability to meet post-merger financial targets depends on slowing the erosion of TV revenue while achieving sufficient streaming growth to service its net debt, which stands at about $80 billion. MoffettNathanson analyst Robert Fishman warned that aggressive cost-cutting in TV could accelerate revenue declines. Skydance expects interest expenses to exceed $6 billion next year and aims to reduce its debt-to-earnings ratio from roughly seven-to-one to three-to-one.

While Skydance’s CFO said the firm is not seeking additional capital, rumors persist that David Ellison may look to further investors, including his father Larry Ellison or other high-net-worth individuals. Cost-saving measures are projected to reach $2-3 billion from the Paramount acquisition and additional efficiencies from the Warner Bros. Discovery assets. Layoffs are expected by year-end and into early 2027.

The company also faces negotiations over a sequel to “Barbie,” with talent demanding compensation comparable to the original’s success. Skydance’s leadership, including co-CEO Ynon Kreiz and president Andy Gordon, said they remain focused on delivering content that can generate long-term value.

"Content is our asset," Cinelli said. "We’re confident we can drive growth and increase profitability and cash flow."