The departure of De Luca and Abdy was confirmed following a decision by Skydance co-CEO David Ellison to consolidate leadership under his existing Paramount Pictures Co-Chairs, Dana Goldberg and Josh Greenstein. This new structure, aimed at cost-efficiency and debt reduction, directly conflicted with De Luca and Abdy's Warner Bros Discovery (WBD) contract, which was set to run through 2030 and stipulated their direct reporting to the CEO, with marketing and distribution under their purview.
According to a report from Deadline, the executives were "blindsided and upset" to learn of their fate through media reports before receiving official notification from Ellison. While initial discussions months ago had fostered optimism about their continued involvement, Ellison ultimately delivered the news in person on Friday, confirming their exit. Skydance will now be responsible for paying out the remainder of their substantial contract.
De Luca and Abdy leave behind a significant legacy at Warner Bros. During their tenure, the studio garnered 11 Oscar wins this year and presided over a robust slate of upcoming films. These include highly anticipated titles like Dune: Part Three, A Minecraft Movie Squared, Bradley Cooper's Ocean's Prequel starring Margot Robbie, The Lord of the Rings: The Hunt for Gollum, and Godzilla x Kong: Supernova. While their domestic box office numbers for the current year were down from the previous "milestone" year, their strategic contributions to the studio's future pipeline are undeniable.
Looking ahead, the powerhouse duo plans to "take a beat, rest, and re-calibrate," as sources close to the executives told Deadline. Their clear intent is to remain partnered and lead a new "full-bodied theatrical driven motion picture studio." Despite swirling rumors, sources indicate that De Luca and Abdy currently have no competing offers from other major studios. Speculation linking them to high-profile roles at Netflix (potentially replacing Film Chairman Dan Lin) or Sony (where Tom Rothman's contract runs for another 17 months) has been debunked. Similarly, rumors of meetings with Apple and Mubi executives for new positions are reportedly untrue.
Given their impressive track record, which includes not just their recent Oscar wins but also a history of shepherding successful projects, the most likely path for De Luca and Abdy appears to be launching their own venture. "Do you know how much tech money is out there right now? Mike and Pam would have no problem raising capital and starting their own venture given their track record," one source with knowledge of their situation commented to Deadline. A previous attempt to team with former Paramount CEO Brian Robbins to start a new studio was reportedly blocked by their WBD contract terms during merger discussions.
Their departure highlights the volatile nature of Hollywood's executive landscape, particularly during periods of major corporate consolidation. The industry will be watching closely to see where this formidable pairing lands next, as their influence on theatrical filmmaking is widely recognized.