Mattel's longtime CEO Ynon Kreiz is stepping down to join Paramount Skydance as co-CEO following its $110 billion Warner Bros Discovery merger. According to reports from CNBC, Kreiz will begin his new position at Paramount Skydance as co-CEO effective at the closing of the merger and will also join its board. Mattel's board member Roger Lynch, who was the head of Vogue and Condé Nast, will take over the helm from Kreiz, with the transition expected by October 2. The announcement comes less than two weeks after Paramount settled an antitrust lawsuit with a group of state attorneys general that sought to block the merger, with a federal judge entering an order to allow the merger to close on October 6. As per The Hollywood Reporter, Kreiz's addition to the Paramount-Warner Bros Discovery leadership team would give the combined company a veteran operational hand to work alongside Ellison, whose background is in the creative side of the business.
Under the new leadership structure, David Ellison will serve as chairman and CEO, focusing on the company's long-term strategy, creative vision and direction, including talent relationships, strategic partnerships, technology and capital allocation, while Kreiz will oversee day-to-day operations and integration of the combined businesses. As reported by CNBC, the pair will lead as 'one team,' with Ellison's strategic focus complementing Kreiz's operational expertise. Ellison has chosen Skydance as the new company name, saying the name is intended to give the combined business its own identity while preserving the Paramount and Warner Bros brands. The appointment represents Ellison's long-term plan to pursue both Paramount and Warner Bros Discovery, then partner with a leading executive of Kreiz's caliber to integrate and manage the businesses as they build one of the most ambitious next-generation media companies in the industry's history. According to Variety, sources close to the situation indicated that Ellison's courting of Kreiz has been in the works for months and was "another ace up Ellison's sleeve."
Several senior executives are departing as part of the merger integration. David Zaslav, who became CEO of Discovery in 2006 and later oversaw its 2022 combination with WarnerMedia, is expected to leave with more than $550 million in stock and cash, including $34.2 million in cash severance. Michael De Luca, co-head of Warner Bros. Motion Picture Group, and Pamela Abdy, his co-head, will also depart and will not join the combined company. Cindy Holland, who led Paramount's streaming and direct-to-consumer operations, has already departed ahead of the merger. Gunnar Wiedenfels, Warner Bros. Discovery's chief financial officer, and Bruce Campbell, the chief revenue and strategy officer, are also expected to exit following the merger. These departures represent a significant change to the senior management team inherited from Warner Bros. Discovery, with the merger bringing together Paramount and Warner Bros studios, HBO Max and Paramount+, as well as television businesses including CBS, CNN, MTV, TBS, Comedy Central and Food Network.
Paramount Pictures co-chair Dana Goldberg is staying and is expected to take on an expanded role overseeing the combined film business. Deadline reported that Goldberg and fellow Paramount Pictures co-chair Josh Greenstein are poised to run the merged Paramount-Warner Bros film operation. Goldberg previously served as chief creative officer at Skydance Media and helped establish Skydance Television, giving her experience on both the Paramount and Skydance sides of the new company. James Gunn and Peter Safran are staying and will continue to lead DC Studios, developing a long-term plan for the DC Universe including films and television projects based on characters such as Superman, Batman and Wonder Woman. Their expanded responsibilities mean Paramount's existing studio leadership will oversee film operations spanning both Paramount Pictures and Warner Bros. Pictures following the transaction.
Casey Bloys, head of HBO and HBO Max, is poised to oversee the combined streaming operation following Cindy Holland's departure. The merger is scheduled to close on October 6, bringing together Paramount+ and HBO Max under Bloys' leadership. Despite Kreiz's successful transformation of Mattel into a broader entertainment company, the toymaker's shares have risen just 5% during Kreiz's tenure, sharply underperforming a nearly 200% gain in the S&P 500 over the same period. In the second quarter, Mattel's net sales rose 9% in constant currency versus the same time in the prior year, but tariffs and rising oil prices since the start of the Iran war have put pressure on margins as input costs for plastic and resin grow and higher gas prices have weighed on consumers. According to UBS analysts, the announcement adds uncertainty to an already skittish investor sentiment given tougher macro backdrop, rising rates, and likely a more Q4-weighted outcome.
Roger Lynch, who has served on Mattel's board since 2018, is expected to bring media expertise to the role, having led Condé Nast for about seven years and previously overseeing Pandora and Sling TV. As reported by Reuters, Condé Nast named board member Mike Perlis as interim CEO. James Zahn, editor-in-chief at The Toy Book, noted that Lynch's appointment makes sense given the blurred lines between consumer products and media, placing an experienced media operator at the helm. Incoming CEO Lynch led growth in Condé Nast's subscriptions, video, live experiences, commerce, and strategic partnerships before serving as CEO of music streaming service Pandora and Sling TV. Lynch, who will be taking the helm of a sixth company, is best known for leading Condé Nast, Pandora and Sling TV, bringing media, satellite and digital expertise but little direct experience in the toy industry. According to The Hollywood Reporter, Kreiz joined Mattel in 2018 and led the company through both the COVID-19 pandemic and President Trump's tariffs, each of which was an incredibly challenging problem to deal with for a company with as large a global footprint as Mattel.
