Former Disney exec says Paramount-Warner Bros. merger could reshape Hollywood but there’s a catch

There has been an immense uproar regarding the Paramount-Warner Bros. merger right from the announcement. It has also brought forth several speculations regarding the future of Hollywood.

In a recent interview at the Zurich Summit, Kevin Mayer, a former Disney exec, unveils the possibilities that the Paramount-Warner Bros. merger might bring forth. However, there’s a catch.

Former Disney exec, Kevin Mayer, on Paramount-Warner Bros. merger

In the interview, Kevin Mayer speaks about the economic situation that led to the eventual Paramount-Warner Bros. merger. He notes that the entertainment industry is navigating a difficult time, especially with “fewer and fewer” projects getting considerable financial success. Hence, the Paramount-Warner Bros. merger was a crucial step.

However, he is aware of the other aspects that are going to be the outcome of the merger. In the interview, Kevin Mayer notes that the “layoffs,” which are an outcome of the merger, are “an extremely difficult thing”. He notes that the “$6 billion in synergies” is a “euphemism” for the layoffs related to the merger. He also speaks about the promises that David Ellison has made.

Kevin Mayer himself played a significant role when Disney acquired 21st Century Fox. He thinks this merger could bring immense transformation in Hollywood if David Ellison’s promise of producing 30 movies each year is kept. In the interview, he notes that he expects Ellison to keep the promises that he has made.

According to him, Ellison will “do what he says” for a period of “five years” and will release these projects theatrically as well. While speaking about the situation if the Paramount-Warner Bros. merger did not take place, Kevin Mayer notes that it would have led to the loss of the company’s “ability to finance, to distribute, and to market product” with the passage of time in a very substantial manner.

There has already been an immense shift in the world of entertainment. Hence, being “standalone” and maintaining the “status quo” would lead to an array of “very weak companies” that will not be able to do much in the upcoming period of time. Hence, before questioning the merger, this aspect should be taken into careful consideration.

Kevin Mayer notes that the “measure” should be made against these practical complications instead of a “fanciful future,” as nothing is "as good as it was” in the past. Kevin Mayer also spoke about the alarming situation of Hollywood in a previous interview during the Monday Paley Dialogue event, which took place last year in Los Angeles. He noted that Hollywood is “becoming less and less relevant” and is also becoming “less profitable”.

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