Paramount appoints Mattel chief as co-CEO for Warner Bros integration

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Paramount appoints Mattel chief for merger

Highlights

Paramount appoints Mattel CEO Ynon Kreiz as co-chief executive to lead operations and Warner Bros Discovery integration under a dual leadership structure post-acquisition.
The merger aims for over $6bn in annual cost savings and positions the combined Warner Bros-Paramount entity among the world's largest entertainment groups amid industry-wide lay-off expectations.
Mattel shares fell 4.2% Wednesday after Roger Lynch was named as Kreiz's replacement, compounding a year-to-date decline of one third amid profit headwinds.

Leadership plan for the combined studio group

As reported by Financial Times, Paramount says Kreiz will become co-chief executive when the Warner Bros Discovery deal closes under a split leadership structure designed to manage the combination of the two media groups. Ellison is set to retain responsibility for strategy, creative direction, technology, talent relationships and capital allocation, while Kreiz is due to oversee daily operations and integration work.

The appointment comes after Paramount reached a settlement last week with 12 U.S. states that had sued to block the acquisition. The transaction would combine Warner Bros, HBO and CNN with Paramount Pictures and CBS, creating one of the largest entertainment groups globally.

Kreiz has led Mattel since 2018 and previously ran Endemol and Maker Studios. At Mattel, he pushed the company further into entertainment, including the Warner Bros-produced Barbie film, which became the highest-grossing movie of 2023.

Cost cuts and wider Hollywood impact

The merger is expected to reshape Hollywood by bringing together major film and television franchises including Harry Potter, DC Comics, Batman and Top Gun. Employees at the companies are bracing for thousands of lay-offs after Paramount said it expects to deliver more than $6bn in annual cost savings following the takeover.

Kreiz's appointment also gives Ellison an experienced listed-company executive as scrutiny builds over the enlarged group's leadership. Critics have questioned whether Ellison, 43, has enough experience to run such large businesses, while others have raised concerns that his ties to President Donald Trump could affect CNN, which he is set to control through the acquisition.

Mattel shares close down 4.2% on Wednesday after news that Kreiz will be replaced by Condé Nast chief executive Roger Lynch. The stock had already fallen by a third this year as profits weakened under tariffs, inflation and higher royalty payments, and shareholder Southeastern Asset Management urged Mattel in May to explore a sale.

Our earlier article on Paramount’s planned combination with Warner Bros. Discovery explained that a court order cleared the way for the roughly $110bn deal to move toward closing. We noted that David Ellison and Ynon Kreiz were set to run the combined group under a split leadership model, with Ellison focused on long-term strategy and Kreiz responsible for day-to-day management and integration.

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