Israeli-American Ynon Kreiz, a cost-cutter, tapped as co-CEO of Paramount-Warner Bros Discovery
Kreiz, who lived in Israel until his mid-20s, expected to bring fiscal discipline to media giant; is known for launching the blockbuster ‘Barbie’ movie
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David Ellison’s choice of Mattel chief Ynon Kreiz as his co-CEO at the new Paramount-Warner Bros. Discovery signals what the media behemoth will care about most: running a lean, cost-efficient business that can pump more money out of its storied franchises.
Kreiz’s tenure at the Barbie doll-maker, and his previous stint leading production company Endemol, have been marked by cost-cutting and restructuring efforts aimed at improving profitability and overall output.
That skillset positions Kreiz well to take on the task of knitting together two legacy media giants saddled with roughly $80 billion in debt while delivering the $6 billion in cost-savings promised from the industry-shaping merger.
But struggles at Mattel and the privately held Endemol raise some questions about Kreiz’s performance and his ability to take on the much larger Paramount-Warner.
From Ramat Gan to Haim Saban
It’s the largest role yet for Kreiz, 61, who grew up in Ramat Gan and studied at Tel Aviv University before working as a windsurfing instructor for several years and then moving to Los Angeles to pursue an MBA at UCLA.
Once there, he met fellow Israeli business mogul Haim Saban, and the pair quickly struck up a friendship and business partnership. In the 1990s, he established Fox Kids Europe in London on behalf of Saban, which was ultimately sold to Disney as part of a $2.9 billion deal.
“I did take a bet on Ynon, and it paid off… big time,” Saban told the UK’s Telegraph. “He came across as a very fast learner, a relentless, hard-working person who never took no for an answer, and all done with class and charm.”
After working for a few years as a venture capitalist, Kreiz joined Endemol in 2008, and in 2013 became CEO and chairman of Maker Studios, which produced video content for YouTube, racking up years of media experience.
Despite saving more than $1.5 billion at Mattel, the stock price is flat
After that, he went to Mattel. Having arrived in 2018 with a mandate to turn around the struggling toymaker, Kreiz executed more than $1.5 billion in savings through thousands of job cuts and a simpler manufacturing strategy.
But while Kreiz started strong, Mattel has not been able to keep up those rates over the next several years, marred by pandemic pressures, an inflation-led slowdown in consumer spending and tariff costs.
The stock has slipped 2 percent over Kreiz’s tenure so far, drastically underperforming a near 200% jump in the S&P 500 index.
“The CEO once cheered for expanding the company’s margins into double digits with a strong long-term strategy walks away with the stock roughly where it was when he took office,” said Zachary Warring, an analyst at CFRA Research.
Similarly at Endemol, known for the ‘Big Brother’ reality TV franchise, Kreiz’s reorganization efforts helped reduce costs by 20% during his three-year tenure, but the company’s revenue and profits continued to fall, according to a Financial Times report. Kreiz exited the company in 2011 over strategic differences.
A big hit with ‘Barbie,’ then a mixed record
At Mattel, Kreiz turned its brands into box office dollars, launching “Mattel Films” to license the company’s intellectual property to studios. That effort eventually led to the 2023 release of Hollywood blockbuster “Barbie,” currently the company’s highest-grossing film ever globally.
But that track record has been mixed. The “Masters of the Universe” live-action film released this year tanked at the box office, even though it helped build out the franchise and more than tripled gross billings year-to-date.
A live-action Hot Wheels feature film is currently in development at Warner Bros., with “Wicked” director Jon Chu set to helm the project, with other Mattel franchises reportedly exploring Hollywood projects, including “Barney,” “Polly Pocket” and “American Girl.”
Challenges remain despite ‘operating firepower’
As co-CEO, Kreiz will run Paramount-Warner Bros. Discovery alongside Ellison, but will focus squarely on operational efforts and day-to-day management, while Ellison oversees creative development and overall strategy.
“In Ynon, I’m adding a partner with strong leadership and the operating firepower this integration demands. It’s a division of labor built on our complementary strengths,” Ellison said in a statement on Wednesday.
Among the challenges for Kreiz in executing the cost-savings are Paramount’s promises in its antitrust settlement. These include spending at least $300 million more each year in domestic film production, continuing to operate both legacy studios’ production lots and honoring existing bargaining agreements with Hollywood unions — all of which shut off easy paths to synergies.
Kreiz is also expected to supercharge intellectual property at the new Paramount-Warner Bros. Discovery to fuel growth across potential new areas of business.
“Ynon’s entertainment background fueled his tenure at Mattel, transforming the toy titan into an IP-driven powerhouse focused on building franchises from its toy and game lines,” said toy industry expert James Zahn, editor-in-chief at trade publication The Toy Book.
Zahn added, “Taking the reins at the combined Paramount-Warner Bros. is a natural move for a leader who’s always had Hollywood in his eyes, and it places him in control of familiar IP that still retains a Mattel connection.”
Times of Israel staff contributed to this report.
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