Federal judge approves antitrust settlement, clearing Oct. 6 deal close
Mattel Chief Executive Ynon Kreiz has been tapped to serve as co-CEO of the combined Paramount-Warner Bros. Discovery once the $81 billion deal closes, Paramount said Wednesday. David Ellison will remain chairman and CEO of the merged entertainment company, with Kreiz joining the board and sharing responsibility for day-to-day management, strategic planning and integration of the two businesses.
The announcement came the same day a federal judge approved the settlement Paramount reached last week with 12 state attorneys general who had sought to block the Warner merger on antitrust grounds, clearing one of the final obstacles to closing the deal. Warner Chief Executive David Zaslav was meeting with Ellison to discuss the integration of the companies when word came that the judge had signed off, Ellison said.
“Ynon’s capability and operational expertise inside of the company will ensure we can execute this integration at the absolute highest level to unlock value for shareholders and the creative community alike,” Ellison said in an interview. Kreiz said he and Ellison are “looking to build what will become a cohesive, global entertainment platform.”
Mattel on Wednesday named board member and former Condé Nast CEO Roger Lynch to succeed Kreiz as CEO of the toy manufacturer, effective Oct. 2. Kreiz is also stepping down as Mattel’s chairman and leaving the company’s board. Lead independent director Gwendolyn Sontheim will become chair. Kreiz brings experience restructuring companies to his new role: after his arrival at Mattel in 2018, the company cut more than 2,000 jobs as it shrank its manufacturing footprint. During more than eight years as Mattel’s CEO, he is credited with transforming the toy manufacturer — whose brands include Barbie and Hot Wheels — into an intellectual property-driven entertainment company spanning film, television and games.
The Kreiz-led Mattel produced the 2023 Warner Bros. blockbuster “Barbie” and movies based on several of its best-known brands, including “Masters of the Universe,” the fantasy franchise featuring He-Man and Skeletor. “Matchbox: The Movie,” starring John Cena and based on Mattel’s toy-car brand, is scheduled to debut on Apple TV on Oct. 9.
Kreiz would have no shortage of intellectual property to work with at the combined company. Warner is home to Batman, Superman, Wonder Woman and Harry Potter, while Paramount’s stable features Star Trek, Mission: Impossible, Teenage Mutant Ninja Turtles, Transformers and Nickelodeon’s SpongeBob SquarePants.
The combined Paramount-Warner will carry nearly $80 billion in debt. Paramount has told investors it expects $6 billion in annual synergies within three years of combining operations. The merger would place two legacy movie and television studios, two subscription streaming services, CNN, Food Network, MTV, CBS and HBO under one corporate umbrella.
Tapping Kreiz is the second major executive move Ellison has made in recent days. Casey Bloys, content chief at Warner-owned HBO and HBO Max, is expected to oversee the combined company’s streaming operations, people familiar with the matter said. On Tuesday, Paramount’s top streaming executive, Cindy Holland, resigned, making way for Bloys.
Ellison is expected to unveil the combined company’s organizational structure in the coming days, including leadership teams for the movie and television studios — and potentially CNN and CBS News, people familiar with the matter said.
Gerry Cardinale, founder and managing partner of Paramount’s co-controlling shareholder RedBird Capital Partners, said in a statement that “historic” leaders “know when to bring in the right partner to make it last — and that’s what David has done.”
Prior to Mattel, Kreiz spent much of his career in media and entertainment, serving as chairman and CEO of television producer Endemol and digital-video company Maker Studios. Earlier, he co-founded and ran Fox Kids Europe.
The hiring of Kreiz reflects Ellison’s willingness to look beyond the existing ranks of Paramount and Warner as he builds the leadership team for the combined company. It also adds a veteran chief executive with experience overseeing a large public company to what will be a sprawling entertainment business.
Ellison will now have to win over people in the entertainment industry, including film and TV workers and talent, who are concerned that the continued consolidation of Hollywood will do long-term harm to the movie and television business, which is already under pressure.
“We recognize the controversy and turbulence that has existed to get us to this point. I hope we prove them wrong through action,” Ellison said. He said that a year from now he wants people to say “this is the best place to work where we encourage artists and creators to aim high.”