Skydance CEO David Ellison Fires Warner Bros. Chiefs De Luca and Abdy via Phone Call

Key points

• David Ellison called De Luca and Abdy on Friday to inform them of their termination, confirming an anonymous report leaked the previous night.
• The combined Warner Bros.-Paramount entity, now branded Skydance, carries approximately $80 billion in debt, necessitating a restructuring of leadership.
• Josh Greenstein and Dana Goldberg, co-chairs of Paramount Pictures, will oversee the merged film divisions, replacing De Luca and Abdy.
• De Luca and Abdy’s last day is expected to coincide with the merger’s completion on Tuesday, October 6, 2026.
• The duo’s 2026 slate faced significant box office failures, including Tom Cruise’s 'Digger' and Maggie Gyllenhaal’s 'The Bride!'
• De Luca and Abdy had previously signed a five-year contract renewal through 2030, which they will be paid for despite their early exit.

Background

De Luca and Abdy led Warner Bros. to significant critical and commercial success in 2025, including a Best Picture win for 'One Battle After Another' and major box office hits like 'Sinners' and 'A Minecraft Movie.' However, 2026 saw a sharp decline in performance, with several high-budget films failing to meet expectations. The merger with Paramount, valued at $111 billion, was delayed by antitrust issues but cleared the way after a settlement with California Attorney General Rob Bonta. The combined entity is required to release 30 films annually for two years, with penalties for falling short.

How outlets are covering it

TheWrap and The Hollywood Reporter emphasize the inelegant manner of the termination, noting that De Luca and Abdy learned of their exit via an anonymous leak before receiving a phone call from Ellison. TheWrap highlights Abdy’s bitter response, 'Good luck to you. I left you 39 movies,' while The Hollywood Reporter notes that De Luca had previously believed he was safe after a meeting with Ellison. Vulture focuses on the loyalty dynamic, stating that Ellison prefers his long-time allies Greenstein and Goldberg, and that insiders doubt the new leadership’s ability to manage the massive slate. The Hollywood Reporter also notes that De Luca and Abdy are exploring a potential move to Netflix, while Vulture suggests that a new creative czar, possibly Peter Rice, could be appointed to oversee the combined studios.

Why it matters

The departure of De Luca and Abdy marks a significant shift in the leadership of one of Hollywood’s major studios, signaling a move toward cost consolidation and loyalty-based leadership under David Ellison. The decision could impact the future of high-budget, auteur-driven films, as Greenstein and Goldberg are known for franchise and 'meat and potatoes' movies. The merger also raises questions about the ability of the new leadership to meet the required output of 30 films annually, with potential penalties for falling short.

What to watch

The merger is expected to close on October 6, 2026, with De Luca and Abdy’s last day coinciding with the completion. Greenstein and Goldberg will oversee the combined film divisions, while James Gunn and Peter Safran will continue to lead DC Studios. De Luca and Abdy are exploring potential moves to Netflix, and there is speculation about a new creative czar being appointed to oversee the combined studios. The combined entity will need to navigate the required output of 30 films annually, with potential penalties for falling short.