Mayer's Shocking Plan to Merge Paramount & Warner Bros at Zurich

**Kevin Mayer Weighs Paramount‑Warner Bros Merger Amid Declining Studio Revenues**

Former Disney executive Kevin Mayer spoke at the Zurich Summit this weekend about the Paramount‑Warner Bros merger. The former head of Disney’s 2019 acquisition of 20th Century Fox, now co‑CEO of Candle Media, said consolidation is inevitable amid declining revenues.

He framed the discussion around the future of independent studios facing a shrinking market for high‑grossing films.

Mayer described the film industry as being in a phase of decline with “fewer and fewer” great financial outcomes. He argued that the status quo of multiple independent studios working with falling revenues no longer makes financial sense. He warned that if the merger did not happen, more companies would become too weak to compete.

During the panel, Mayer referenced his experience negotiating Disney’s purchase of 21st Century Fox and integrating the two entities. He said he expected Paramount‑Skydance CEO David Ellison to honor promises of producing 30 movies a year for at least five years after the deal closes. “David Ellison made some promises…

I expect he’ll keep them… He’ll make the movies and he’ll release them theatrically,” he said, noting that public commitments are hard to reverse.

## Background & Context

Mayer joined Candle Media, a Blackstone‑backed media company, in 2021 as co‑CEO. Prior to that, he served as Disney’s chief integration officer during the 2019 acquisition of 20th Century Fox. His tenure at Disney saw him oversee blending of two large studio operations and aligning corporate cultures.

The industry has faced a decline in box‑office receipts and increased competition from streaming services. Analysts note fewer blockbuster releases generate the same scale of revenue as in prior decades. This environment has prompted studios to consider mergers to maintain capital for high‑budget productions and better marketing channels.

## What Mayer Said

Mayer framed consolidation as inevitable amid declining revenues. He warned that a stand‑alone status quo would lead to “a larger number of very weak companies unable to do much in the future.” The ability of studios to finance, distribute and market products is already deteriorating, he said.

Mayer urged measuring the future against weaker independent studios rather than nostalgic pasts.

He expected Paramount‑Skydance CEO David Ellison to keep promises of producing 30 movies a year for at least five years. “David Ellison made some promises… I expect he’ll keep them…

He’ll make the movies and he’ll release them theatrically,” Mayer said. He added that Warner Bros. would likely continue as a separate entity, . When you hear these promises of $6 billion in synergies, that’s a euphemism for a lot of layoffs…

That’s an extremely difficult thing, obviously, and that’s what I think this merger portends.

## What Happens Next

Merger talks remain ongoing, with both studios working through integration details. Industry observers will monitor whether the projected synergy figures translate into cost‑cutting measures that affect employees across both companies. Executives are preparing for restructuring once the deal closes.

The next steps will involve finalizing agreements on financing, distribution rights and future governance of the combined entity.

Mayer’s remarks at Zurich highlight the tension between financial realities and creative ambition in Hollywood’s studio ecosystem. If completed, the Paramount‑Warner Bros merger could redefine the competitive landscape, forcing studios to either adapt through scale or face continued decline.

The industry will watch closely as both companies navigate consolidation amid a shifting economic environment.