Warner Bros. Motion Picture Chiefs Michael De Luca and Pamela Abdy Depart Ahead of Skydance Merger

Warner Bros. motion picture chiefs Michael De Luca and Pamela Abdy are set to exit the studio on Tuesday, Oct. 6, the first day of operations for the newly formed Skydance entity that combines Paramount and Warner Bros. The departure ends months of speculation about whether the duo would stay on after the merger.

The pair oversaw a domestic box-office total of $448.4 million from Jan. 1 to Oct. 1, down from $4.3 billion the previous year, and their latest release, the Tom Cruise-led "Digger," opened with an estimated $125-$160 million domestically. Sources said they learned of their exit from a press report rather than a direct call from Skydance co-CEO David Ellison, contrary to earlier expectations that they would transition into the combined studio.

Ellison reportedly informed De Luca and Abdy on Friday that the new cost-control strategy would keep Paramount Pictures co-chairs Dana Goldberg and Josh Greenstein in charge of Warner Bros.’ theatrical brands, a structure that conflicts with the executives’ contract, which runs through 2030 and includes reporting to the CEO for marketing and distribution.

With no competing offers on the table, the executives plan to take time to reassess their options. Rumors have linked them to potential roles at Netflix, Sony, Apple TV, and the streaming platform Mubi, but none have been confirmed. A source noted that, given their track record—including 11 Oscar wins this year—they could raise capital to launch an independent studio if they choose.

Earlier speculation that they might partner with former Paramount CEO Brian Robbins on a new venture was dismissed after contractual restrictions were clarified. In the meantime, industry observers note that Warner Bros. has experienced a volatile box-office performance this year, contrasting with its strong showing last year, while the merged entity anticipates future tentpole projects such as "Dune: Part Three" and several high-profile franchise films slated for release through 2027.