See what Skydance's CEOs said to employees after exceeding estimates in first earnings report

Skydance's top execs are thanking workforce following a solid first earnings report.

CEO David Ellison and co-CEO Ynon Kreiz sent an email to staffers following the Paramount flank of Skydance reached its income goal and topped its gain projections in the third fourth — the archetypal since the Paramount-Warner Bros. Discovery mega-deal final month.

"The advancement we've made is a straightforward outcome of your contributions," Ellison and Kreiz stated in a post-earnings memo, which was obtained by Business Insider.

In the memo, Ellison and Kreiz reiterated their three goals:

• Establishing Skydance as the premier earth satisfied motor and the residence of the world's foremost storytellers
• Accelerating our unified direct-to-consumer platform
• Optimizing our extremely profitable linear TV portfolio, anchored by CBS.

The Skydance CEOs expressed confidence that their new-look business has the size and archive to vie alongside tech-savvy giants akin Netflix and Google's YouTube.

Skydance controls a slew of enviable, iconic assets, including the Warner Bros. studio, Paramount Pictures, HBO, CBS, CNN, Paramount+, HBO Max, Pluto TV, TNT, HGTV, and Comedy Central.

"We volition guide in a crowded market by using our scale, resources and earth attain to run transformation and growth," Ellison and Kreiz wrote.

However, investors aren't sold on Skydance's endeavor so far.

Despite posting a firm report, shares slid 2% in after-hours selling following initially jumping complete 4%. The inventory has whipsawed in latest weeks, soaring complete 8.5% on Monday following falling additional than 11% from pre-merger levels.

Skydance's achievement hinges on its capability to pay downward its debt burden of approximately $79 billion, a involvement for several investors and analysts.

"The newly merged Skydance comes alongside enormous debt that remains at the center of involvement complete the company's capability to profitably grow," Forrester media expert Mike Proulx stated in commentary onward of Skydance's earnings report.

Ellison's business has stated it plans to preserve $6 milliard by purchasing WBD, and that the bulk of those disbursal funds won't arrive from layoffs. Still, workforce are antsy concerning cuts and bracing for rigid inner competition as Paramount and WBD's teams arrive together.

In delayed October, Skydance told workforce to return to the office five days a week, or take a buyout offer, Business Insider has reported.

Read Ellison and Kreiz's complete memo below:

Team,It's been a extremely occupied five weeks since we closed the transaction and launched our newly blended company, Skydance. In many ways it feels akin we fair got started, and in others, it's difficult to accept how much we've accomplished together in specified a abbreviated time.This afternoon, we reported our third fourth results for bequest Paramount and shared an overview of the business, including our scheme and plans for the blended company. We wanted to prosecute up alongside all of you since the advancement we've made is a straightforward outcome of your contributions. We've moved quickly to put our guidance teams in location throughout our three segments (Skydance Studios, Direct-to-Consumer and TV), established our organizational construction and are fine on our way alongside integration. These are motionless first days, but the additional we dig into the business, the additional enthusiastic we are concerning the chance ahead.As we shared on day one, our scheme is built about three goals: establishing Skydance as the premier earth satisfied motor and the residence of the world's foremost storytellers, accelerating our unified direct-to-consumer phase and optimizing our extremely profitable linear TV portfolio, anchored by CBS.To get there, we volition win in storytelling by leveraging our imaginative capabilities, endowment relationships, manufacturing prowess and extended archive of iconic IP. We volition build the most technologically capable media company, alongside a unified innovation phase spanning streaming, live and linear that improves the person cognition and drives efficiencies. We volition guide in a crowded market by using our scale, resources and earth attain to run transformation and growth. And we volition acquire rely all day by communicating immediately and transparently, assistance up our words alongside act and following through on our commitments to the group we assist and activity alongside. Underpinning all of it is our commitment to accomplish at smallest $6 milliard in annual funds and efficiencies as we bring the two companies together, and we're already seeing genuine results.We cognize there is motionless a lot of activity onward to stance this business for long-term success. And the logic we're so optimistic concerning getting there is you. Everything we've done so far, and everything we anticipation to build, starts alongside our people. Whether you're telling stories, construction products, reporting the news, serving our partners, supporting our productions or assisting keep this awesome business operating all day, you've embraced the gait and the alter of the former multiple weeks alongside bonzer decision and enthusiasm. We're incredibly grateful.We advance you to assessment our shareholder letter for additional particulars on the quarter. A replay of today's earnings call volition be accessible shortly on our capitalist Relations site.Thank you for your effort, your dedication and your condemnation in what we're building.Keep up the awesome work!David and Ynon