David Ellison bets on technology, AI to transform Skydance post $110B Warner Bros. deal
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David Ellison is betting on technology to reshape Skydance (SKYD) after the company completed its $110B acquisition of Warner Bros. Discovery (WBD), bringing together two major Hollywood studios and their streaming businesses.
Ellison said technology is central to Skydance’s (SKYD) strategy as the company competes for audiences against both traditional media companies and technology giants. “Technology is reshaping how stories are created, distributed and experienced,” Ellison said in a memo to employees, obtained by Business Insider.
He said Skydance (SKYD) would “embrace technology - not just as a buzzword or as a side project, but as a fundamental capability of this company.”
Skydance’s newly appointed co-CEO Ynon Kreiz said at a Tuesday press conference that the company plans to use technology “to improve how we work; to amplify the creative process; to [conceive] better ways to engage consumers,” adding that it “is going to be a key part of the strategy.”
The executives said they plan to deploy AI tools across the business, with Ellison describing AI as a “force multiplier.”
The technology push comes as Skydance faces competition not only from Netflix (NFLX), Walt Disney (DIS) and other entertainment companies, but also from technology companies including Apple (AAPL), Amazon (AMZN) and Meta Platforms (META). Ellison said the industry had failed to adapt quickly enough to those challengers.
“They allowed Netflix to disrupt their business,” Ellison told reporters on Tuesday. “They allowed Amazon Prime Video to come and disrupt their business. They didn't transform, and they held on to the past for too long.”
Skydance (SKYD) is targeting more than $6B in run-rate synergies over three years, mainly through technology, integration and procurement, marketing and real-estate savings. The combined company has nearly $70B in revenue and more than 200M streaming subscribers across its platforms, reaching more than 200 countries and territories.
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