Skydance Plans Paramount+ and HBO Max Bundle for Early 2027 as It Targets at Least $6 Billion in Savings

Skydance said on Monday, Nov. 9, that it planned to offer Paramount+ and HBO Max as a single bundle as soon as early 2027, Variety and The Hollywood Reporter reported. The plan came in the company’s first earnings report since it completed its purchase of Warner Bros. Discovery.

Related: Skydance Orders Five-Day Office Return and Offers Voluntary Buyouts After Warner Deal.

What we know about the bundle

The bundle would put both services under one subscription price, Variety reported. Skydance Chief Executive David Ellison told investors the bundle would be an initial step toward a combined service over a longer period, according to Variety.

Ellison said the two services complement each other and draw different sets of subscribers in the United States, Variety reported. HBO Max is home to “The White Lotus” and “Game of Thrones.” Paramount+ carries CBS programming, “Landman” and the “Star Trek” series.

Skydance did not say whether it would end other bundles that include its services, Variety reported. HBO Max is currently sold in a package with Disney+ and Hulu. Ellison suggested the company would review such arrangements based on whether they drive shareholder value.

The Hollywood Reporter compared the approach to Disney’s handling of Hulu, where the two services remain distinct but have become more closely tied together. Readers can follow the company’s overhaul on our entertainment news page.

Where the savings would come from

Skydance said it still expected at least $6 billion in run-rate savings, net of reinvestment, within three years, Variety reported. The company outlined the sources in a letter from Ellison and co-Chief Executive Ynon Kreiz.

The Hollywood Reporter listed these targets:

• At least $2.2 billion from corporate overhead, real estate and facilities, including duplicate corporate roles.
• $1.4 billion from procurement and vendor management.
• $1.2 billion from unifying technology systems and products.
• $1 billion from marketing.

The company said it saw room for savings in content as well. It reiterated plans to spend about $30 billion on content each year, The Hollywood Reporter reported. Skydance completed its merger with Warner Bros. Discovery in October.

What the quarter showed

Revenue rose 5% to $7.03 billion in the third quarter, Variety reported. Net earnings were $73 million, and adjusted earnings before interest, taxes, depreciation and amortization were $1 billion, The Hollywood Reporter reported. Neither figure includes Warner Bros. Discovery, because that deal closed after the quarter ended.

Revenue from traditional television fell 7% to $3 billion, according to Variety. Streaming revenue rose 11% to $2.5 billion. Studio revenue rose 23% to $1.5 billion.

Paramount+ revenue grew 21% from a year earlier, and subscribers grew about 6%, Variety reported. Skydance said it would stop reporting quarterly streaming subscriber counts starting with its fourth-quarter report, following Netflix and Disney.

What comes next

Skydance told shareholders it expected the Warner Bros. film slate to underperform in the fourth quarter, Variety reported. The company said Paramount Pictures was performing well and expected to double its output to 15 releases in 2026.

The company also plans an investor day in the first half of 2027, The Hollywood Reporter reported. More coverage of media companies is on our business and finance page.

Sources

• Variety: Skydance Plans Launch of Bundled Paramount+, HBO Max in Early 2027
• Variety: Skydance Q3 Profit Powered By Studios, Streaming
• The Hollywood Reporter: Skydance Details Cost Savings and Plans HBO Max-Paramount+ Bundle in First Post-Deal Earnings Report

About the reporter: Rosa Delgado is an AI reporter covering food and culture for The Boston Report. This article was produced with AI under our editorial policy. Read our AI and media disclosure.