David Ellison has appointed Ynon Kreiz, former Mattel CEO, as co-CEO of the newly merged Paramount Skydance and Warner Bros. Discovery, addressing critical governance questions for the ambitious media empire. Kreiz, known for revitalizing Mattel and bringing ‘Barbie’ to the big screen, will focus on day-to-day operations and integration while Ellison steers long-term strategy. The co-CEOs face the complex challenge of realizing $6 billion in cost savings and managing $79 billion in debt for the combined entity.
David Ellison has dedicated two years to forging his media empire, and now he’s bringing in a formidable leader to help steer its course. Ynon Kreiz, the outgoing CEO of Mattel, will step into the role of co-CEO for the soon-to-be-merged Paramount Skydance and Warner Bros. Discovery. This new entity, simply named Skydance, is set to finalize its merger on Tuesday.
Kreiz’s appointment addresses a critical governance question that has lingered over Ellison’s aggressive acquisition strategy: Can the tech executive, son of billionaire Larry Ellison, not only acquire these legacy media assets but also effectively lead them?
Less than 18 months ago, Ellison was primarily known as the CEO of Skydance, a film production company with a limited but notable portfolio of hits like the Tom Cruise-led 'Mission: Impossible' franchise and 'Top Gun: Maverick'.
By August 2025, Ellison had successfully closed an approximate $8 billion acquisition of Paramount. Roughly a month later, he launched a campaign for WBD, igniting a bidding war that ultimately led to an estimated $110 billion enterprise value deal to merge two of Hollywood’s media titans. The combined Skydance will consolidate Paramount and Warner Bros. film studios, the CBS broadcast network, an extensive array of pay-TV networks including CNN, TNT, MTV, and BET, and streaming services Paramount+ and HBO Max.
Kreiz, a 30-year media veteran, is widely credited for bringing 'Barbie' to the big screen in 2023. He has cultivated a reputation as a turnaround specialist, with deep roots in entertainment despite his more recent tenure in consumer goods. He commenced his role at Paramount Skydance on Monday, becoming co-CEO upon the merger’s Tuesday closing.
Many on Wall Street commend Kreiz for revitalizing Mattel through strategic cost-cutting, though some analysts question if his prior entertainment experience is sufficient for navigating this complex merger and how effectively he and Ellison will co-manage. Matthew Condon, an analyst at Citizens Bank, stated, “We view the appointment of Ynon Kreiz positively, as his operating experience and brand/IP focus uniquely position him to help lead the integration of Paramount Skydance and WBD and build the combined business into a best-in-class content and IP platform.”
Ellison will concentrate on the company’s long-term strategy, creative vision, technology, and capital allocation, while Kreiz will oversee day-to-day management and the integration of the combined businesses, as per the company’s announcement. Matthew Dolgin, a senior equity analyst at Morningstar, commented, “Kreiz has extensive experience in media and entertainment from before his time at Mattel. However, we don't necessarily think he is the best conceivable choice to handle this task.” He added, “Though his title is co-CEO, we view Kreiz as a chief operating officer.”
Mattel Turnaround
Before his eight-year tenure as Mattel CEO, Kreiz served as chief executive and chairman of Maker Studios, acquired by The Walt Disney Co. in 2014. Prior to that, he was chairman and CEO of Endemol Group, a major independent television production company. Earlier in his career, Kreiz co-founded Fox Kids Group Europe, a children’s entertainment company also acquired by Disney in 2002.
Eric Handler, managing director and senior media and entertainment analyst at Roth Capital Partners, told CNBC, “It’s an excellent choice for Paramount.”
When Kreiz took the helm at Mattel in 2018, he was the fourth CEO in as many years. At the time, iconic brands like Fisher-Price, Barbie, and American Girl struggled to resonate with evolving consumer tastes, and Mattel was reeling from the Toys R Us bankruptcy.
“Mattel had like a four-year revenue downturn, gone from being quite profitable to losing money, and he turned that around in like two years,” Handler noted. Wall Street analysts suggest Kreiz’s experience in revitalizing Mattel will prove invaluable for Skydance as it navigates a vast and intricate merger.
Gerrick Johnson, equity research analyst at Seaport Research Partners, highlighted, “He got off to a really great start [at Mattel] because he did some structural improvements. They eliminated a lot of SKUs, rationalized the business lines... They did a great job of cutting like $1 billion worth of cost right out of the gate, becoming more flexible, quicker to market.” These cost-cutting measures included restructuring Mattel’s supply chain, reducing toy production, closing manufacturing facilities, and cutting the workforce by 2,200. Kreiz focused on generating free cash flow and deleveraging the company’s balance sheet.
Citizens’ Condon concluded, “Net-net, we believe Mr. Kreiz’s operational experience restructuring and turning around Mattel, coupled with his focus on developing world-class IP, uniquely positions him for the co-CEO role and to lead the integration of Paramount Skydance and WBD — an integration largely predicated on high expense synergies, and ultimately, building a best-in-class content and IP platform.”
Film Strategy
One of Kreiz's initial key initiatives at Mattel was launching an in-house film division, aiming to leverage box office success to boost toy sales. Through this division, Mattel collaborated with Warner Bros. to bring 'Barbie' to the big screen. The film, directed by Greta Gerwig and starring Margot Robbie and Ryan Gosling, grossed over $1.4 billion globally and revitalized the Barbie brand.
However, despite 'Barbie’s' box office triumph, most of the revenue went to Warner Bros. and theatrical partners. Mattel reported a modest $150 million revenue boost in fiscal 2023. “You can’t argue that Barbie wasn’t anything but a tremendous success,” Johnson said. “But for Mattel, it didn’t translate to the bottom line. Mattel that year generated an incremental $90 million in operating profit, so that’s like 13% growth on a consolidated basis with the ‘Barbie’ movie. Barbie revenue was up 3% that year, but Barbie revenue since is down 22%. … So, a massive deterioration of that Barbie brand since.”
Some analysts suggested Kreiz became overly focused on the entertainment side of Mattel’s business, leading to stagnation in toy innovation and slower sales. Johnson noted, “Post-Covid, earnings have been very stagnant. The top line has flatlined. Margin growth has stalled. Innovation has stalled, and it just seems like a classic, you know, taking the eye off the ball.”
Jaime Katz, senior analyst at Morningstar, observed that Mattel’s stock “done a round trip under Kreiz’s tenure.” Shares approximately doubled to the mid-$20 range during his time as CEO before falling back to around $15 apiece. Katz concluded, “Kreiz’s strategy to establish Mattel as an IP-driven, high-performing toy company has largely fallen flat.”
Merging Paramount and WBD
Despite these criticisms, analysts generally view Kreiz as a significant asset for Skydance and Ellison as the company embarks on a complex and lengthy merger. Laura Martin, an analyst at Needham, estimated that the integration of Paramount and Warner Bros. Discovery into Skydance could take two to three years.
Paramount Skydance has committed to achieving $6 billion in cost savings within three years of closing the merger, while also managing approximately $79 billion in debt post-transaction. Martin anticipates that “cost synergies to be higher than the $6 billion promised.” While Paramount executives have indicated that most savings will come from non-labor costs, the specifics remain to be determined.
Ellison has previously expressed intentions to merge the Paramount+ and HBO Max streaming services into a single platform, which could naturally lead to a consolidation of infrastructure. In film, Skydance will now house the Warner Bros. and Paramount studios, in addition to its DC studio, with ambitious production targets. To settle an antitrust lawsuit by state attorneys general, Paramount Skydance agreed to release at least 30 films annually into theaters in 2027 and 2028, and at least 32 films annually from 2029 to 2031. It’s uncertain how much cost-cutting these studios can absorb while still meeting these quotas.
At CBS, Skydance has pledged to prohibit writer layoffs on the broadcast team for at least five years. However, a report from the Department of Economic Opportunity in Los Angeles suggests that approximately 4,500 film and TV jobs in the county are at risk over a three-year period due to the companies combining operations.
Handler concluded, “[Kreiz has] got a big task ahead of him. You know, there’s a huge amount of debt, a massive integration situation that he’s facing. But I think he’ll do a great job with it.”
