Let me say the careful part first: as of Friday morning, this is a report, not an announcement. Puck's Matthew Belloni, citing two well-placed sources, says Mike De Luca and Pam Abdy, the co-chairs who have run Warner Bros.' movie division since 2022, will not be part of the merged Paramount–Warner Bros. company. Paramount declined to comment, and De Luca declined to comment to Belloni. Nobody has said it on the record. What I can tell you is that the story landed the same night David Zaslav threw himself a farewell party in Beverly Hills, with both executives in the room.

I'm not going to pretend I'm neutral about it. I think this is one of the more consequential pieces of Hollywood news this year, and I think the easy version of the story, "Tom Cruise's expensive movie got them fired," gets it backward. Let me show you why.

At a Glance

  • Puck reports that De Luca and Abdy are out. The decision has reportedly been made but not yet delivered, with calls from David Ellison expected by Tuesday morning, Oct. 6, the day the merger is set to close.
  • Paramount's film chiefs, Josh Greenstein and Dana Goldberg, would oversee both studios, and a new Warner Bros. film head would be hired or promoted. De Luca and Abdy are reportedly paid out through 2030.
  • Warner's 2026 has been rough: according to Variety, none of its releases has crossed $100 million domestically, and its share of the North American box office is about 6%, down from 21% in 2025.
  • The same pair greenlit Sinners, which earned a record 16 Oscar nominations, and One Battle After Another, which won Best Picture. Their last release, Digger, opens today.

What was reported, and what isn't confirmed

Here is the whole picture on one card. Everything in the first column comes from Puck's reporting as relayed by TheWrap, Cosmic Book News and World of Reel. None of it has been confirmed by Warner Bros. or Paramount.

The reportDe Luca and Abdy will not join the merged company, per Puck, citing two sources
StatusUnconfirmed. Paramount declined to comment, and the executives have not been formally told, per the report
TimingCalls expected by Tuesday morning, Oct. 6, when the merger is set to close
Who steps inGreenstein and Goldberg oversee both studios; TheWrap adds that another senior executive may be hired to run Warner
DC StudiosJames Gunn and Peter Safran reportedly invited to stay "at least initially"

One more detail worth knowing: Cosmic Book News reported just days ago, citing a Paramount source and a Warner Bros. Discovery source, that the pair would be staying. That doesn't mean Puck is wrong. It means this story has been moving fast, and you should treat every version of it, including mine, as a snapshot.

The case against them: one brutal year

If you're looking for the reason, start with the numbers, because they're ugly. Variety reports that in 2025 Warner Bros. had seven movies cross $100 million domestically and owned 21% of the North American box office. In 2026, it hasn't had one, and its market share has fallen to about 6%.

The misses stack up. Maggie Gyllenhaal's The Bride! grossed about $24 million worldwide against a $90 million budget, according to Variety, and it ended Warner's run of nine straight No. 1 openings. DC's Supergirl made about $126 million worldwide against a $170 million budget, though that one came from DC Studios, which is run separately by Gunn and Safran. And now Digger, with a reported budget somewhere between $160 million and $180 million depending on the outlet, is forecast to open to roughly $8 million to $12 million (Boxoffice Pro) or $12 million to $15 million (TheWrap).

A studio can survive a swing that misses. It can't survive a year where nothing it swings at connects.

That's my honest read of the business case, and it's a fair one. Puck also ties the decision partly to David Ellison's debt load, which tells me this isn't only about taste. When a company is carrying that much debt, it can't afford to bet $160 million on a climate-satire art film, however brilliant the director is.

The case for them: my ledger of their biggest bets

This is the part I think the headlines will skip. I built the table below myself from reporting by Variety, the Associated Press and Indiewire. The numbers are reported figures; the last column is my opinion.

The De Luca–Abdy Ledger
Compiled by us from Variety, AP, Indiewire and Puck-based reporting. Grosses are worldwide and approximate. The verdict column is our commentary.
FilmThe numbersMy verdict
Sinners (2025)The numbersAbout $368M; a record 16 Oscar nominations and four wins, including Best ActorMy verdictThe reason anyone still believes in the big-swing model
One Battle After Another (2025)The numbersAbout $206M against a reported $130M–$135M budget; Best Picture and six OscarsMy verdictFell short at the box office, won the library. A trophy is valuable, but it isn't a hit
Weapons, A Minecraft Movie, Final Destination: Bloodlines (2025)The numbersVariety counts them among the profitable hits behind a seven-film, $100M-plus yearMy verdictProof the mainstream side worked too, though I wouldn't credit one regime for every one of them
The Bride! (2026)The numbersAbout $24M against a $90M budgetMy verdictThe clearest miss, and the first sign the streak was over
Wuthering Heights (2026)The numbersAbout $242M; Variety estimates a $40M profitMy verdictWarner's best movie of the year, which says a lot about the year
Mortal Kombat II (2026)The numbersAbout $129M against an $80M budgetMy verdictA shrug. Fine for a sequel, not enough to fix a slate
Digger (2026)The numbersOpens today; $8M–$15M forecast; $160M–$180M reported budgetMy verdictThe swing I admire on paper and can't make the math work on. I haven't seen it yet

Look at the top two rows and the bottom row together. The people who made Sinners possible are also the people who signed off on Digger. At Monday's premiere, Belloni reports, Tom Cruise thanked them for saying yes so fast, telling them "You didn't even take a breath." I think that sentence explains both the best and the worst of their tenure. Saying yes quickly is how a studio ends up with Ryan Coogler's vampire epic. It's also how it ends up with a $160 million-plus movie that tracks for single digits.

What it means for Clayface and Dune: Part Three

If you're a moviegoer rather than a studio watcher, here's the practical bit. Nothing I've seen suggests either of Warner's two big remaining 2026 releases is in jeopardy. Clayface, the R-rated body-horror movie from DC Studios, opens Oct. 23 with an official runtime of 1 hour 48 minutes, per an AMC listing. Dune: Part Three opens Dec. 18, and World of Reel reports that early word from its first group screenings was very positive.

Those films are finished. A leadership change doesn't re-cut a movie. What it changes is the next batch of decisions: what gets greenlit in 2027 and 2028, and how much marketing money follows a film like Digger once the people who championed it are gone. Cosmic Book News's summary of Puck's report says Ellison wants a Tom Cruise movie too, but a Days of Thunder sequel, not Digger. That tells you the direction: franchises first, and Greenstein and Goldberg's Paramount slate already leans that way, with Scream 7, Scary Movie and a Call of Duty movie.

The five dates I'm watching

  1. Oct. 2–4: Digger's opening weekend.The one number that will be filed under their names. Actuals land Sunday and Monday.
  2. Tuesday, Oct. 6: the merger closes.This is when the reported calls are supposed to happen, and when we'll learn whether the report was right.
  3. Thursday, Oct. 8: Ellison's first bell.Cosmic Book News reports he and co-CEO Ynon Kreiz will ring the New York Stock Exchange's opening bell. Expect the first public talk about strategy.
  4. Oct. 23: Clayface.The first Warner release under the new ownership. A real test of whether R-rated DC horror finds an audience.
  5. Dec. 18: Dune: Part Three.The movie that could turn Warner's year around, and the one I most want to see in a theater.
Gustavo Henrique

Analysis: Gustavo Henrique

I keep coming back to how strange it is that 2025 and 2026 happened to the same two people. In March, their studio won Best Picture. Six months later, their reported reward is a pink slip and a payout through 2030. I understand the logic, and if I ran a company drowning in debt I might make the same call. But I don't think the lesson is "stop taking swings." I think the lesson is that a swing needs a floor, and in 2026 the floor wasn't there.

What I'm hopeful about, and I know that's an unfashionable word this week, is that taste doesn't disappear when a job title does. Someone will say yes to the next Ryan Coogler, even if that means handing him back the rights after 25 years, as World of Reel reports they did with Sinners. I just hope that person exists inside a big studio, not only inside a streaming service. I haven't seen Digger, so I have no verdict. But if this really is the end of the Mike and Pam era, I'd rather remember them for Sinners than for a bad opening weekend. Tell me if you think I'm being too generous.

Warner Bros. shake-up questions, answered fast

Are Mike De Luca and Pam Abdy leaving Warner Bros.?

According to Puck, yes. They reportedly won't join the merged Paramount–Warner Bros. company. Neither studio has confirmed it, and the decision had reportedly not been communicated to them as of Friday.

Who will run Warner Bros. movies after the merger?

Per the report, Paramount's Josh Greenstein and Dana Goldberg will oversee both studios. TheWrap says another senior executive is likely to be hired to run Warner, but no name has been floated.

When does the Paramount–Warner Bros. merger close?

It's set to close Tuesday, Oct. 6, after a judge approved Paramount's settlement with state attorneys general. Our full breakdown of the settlement explains what it protects.

Will Dune: Part Three still open on December 18?

Nothing in the reporting says otherwise. The film is finished and still dated Dec. 18, the same day as Avengers: Doomsday.

What happens to James Gunn and DC Studios?

Puck reports Gunn and Safran will be invited to stay on at DC, at least initially. Cosmic Book News notes Gunn's current contract runs through 2027.

How is Digger doing at the box office?

It opens today. Boxoffice Pro forecasts $8 million to $12 million, and TheWrap $12 million to $15 million. Our Digger score breakdown covers the reviews.

OUR PROCESS

Independently reported and written for this story. The executive departures are reported by Puck and not confirmed by either company; figures were checked against the sources below on October 2, 2026, and may change. See our full editorial methodology for how we verify claims and separate fact from analysis.

Sources & Further Reading

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