Warners Execs Mike De Luca and Pam Abdy Face Ouster Rumors as Their Tenure Ends in Tension

Josh Greenstein told Mike De Luca over a month ago that he and Pam Abdy were likely to be removed from their roles, though Greenstein himself is co-chair of Paramount Pictures rather than David Ellison. The news finally became public late Thursday night when a Puck report confirmed the replacements, with Josh Greenstein and Dana Goldberg taking over for De Luca and Abdy.

Sources familiar with the meeting say Greenstein told other executives in a cross-town engagement that he wanted to get rid of Abdy and De Luca. Other sources counter that Greenstein’s remark was directed toward the general stability of Warner Bros. and was made in the context of Greenstein vying for a project and peacocking Paramount’s own superior stability and executives.

Greenstein was reached by De Luca, who made his demand, “Are you seriously saying this?” according to sources familiar with the conversation. Greenstein denied the accusations and blamed it on a bad game of telephone. Since the deal remained in limbo due to the antitrust suit, he was not legally allowed to make personnel decisions.

Greenstein’s Denial

De Luca said Greenstein was barred from making personnel choices due to the merger deal’s uncertain status while the antitrust case remained unresolved. Greenstein rejected those claims and attributed them to a garbled game of telephone.

The Meeting With Ellison

Since 2022, De Luca and Abdy have led Warner Bros., and for the last four years they have endured persistent speculation about their fate at the studio. Rumors of possible removals and contract renewals have followed them constantly. The pair also faced charges of spending too much on films with weak box office chances, a complaint that includes this weekend’s Tom Cruise disaster Digger.

Thanks to major box office hits like Sinners and Weapons, and winning best picture for One Battle After Another, they have been celebrated as cinema heroes. A high-level Warners source says De Luca and Abdy believed they were safe after a meeting with Ellison, during which he suggested they would stay.

De Luca and Abdy told people they believed there could be a friendly rivalry between themselves and Greenstein and Goldberg, given that they all had their own relationships with talent and filmmakers. One Warners source says “Clearly a lot has changed since then.”

The Netflix Exit Plan

Netflix has emerged as a potential destination for both De Luca and Abdy, according to associates who have spoken about the pair’s plans. De Luca reportedly developed a bond with Netflix boss Ted Sarandos through a series of talks that took place when the streaming company was rumored to be in the market to buy Warner Bros. late last year.

A source who has business with both Warners and Netflix cautions that “All of their relationships are theatrical relationships. You aren’t going to convince those filmmakers to go make their big streaming movie.” Adding that if he were Ted, he’d say, “Come over, I’ll give you a sweetheart deal, and help us think through what theatrical could look like.”

As it seeks an elusive best picture Oscar, Netflix has given its longest theatrical window yet for its Cannes acquisition La Bola Negra.

A person who has come to Warners for a matter of business remarks “Netflix’s audience taste is more down the middle. It would be interesting to have them and their more filmmaker-driven approach at Netflix,” while also noting “I just don’t know if the Netflix audience wants that. They want Red Notice, not May December or Roma or Lost Daughter.”.

The Merger Settlement

Rob Bonta, California’s Attorney General, said a settlement with Paramount Skydance paves the way for a merger. Under the terms, the joined studios must put out 30 films over two years, followed by 32 films for three more years, with penalties attached if the threshold isn’t met.

Should Skydance fall short on a single film, the studio owes $30 million to health and pension funds, shared across the guilds. Should a judge intervene, the studio could be forced to sell or spin out Miramax, the company behind the 2026 Paramount Skydance hit Scary Movie.

James Gunn and Peter Safran remain in charge of DC Studios as it works through a turnaround following an unfortunate showing with Supergirl. Richard Brener is believed to be safe at New Line, which houses lucrative franchises like The Conjuring and The Lord of the Rings.

The New Labels

Warner’s newest studio label, Clockwork, run by a trio of former Neon executives, is preparing for its first big theatrical release, a remastering of the 1971 British film The Devils, out Oct. 16. Clockwork has proved a player at festival markets, landing upcoming films from Sean Baker and Park Chan-Wook, and is looking to get into the low-budget genre game.

The Pressure on the New Team

A deal requires 30 films to be produced annually by the merged Paramount and Warner Bros. studio, along with real penalties that include a forced sale of Miramax should the target be missed. A person familiar with Warners contends that four executives cannot manage marketing and distribution together without battling over dates and budgets.

The remaining teams at DC Studios, New Line, and Clockwork now feel the strain. Each label carries its own distinct identity, its own slate of films, and its own willingness to take chances.

1. DC Studios and New Line keep their current leadership.
2. Clockwork prepares for its first theatrical release.
3. Greenstein and Goldberg take control of both film divisions.

The battle among four chairmen for control of dates and budgets is not a made-up story — it defines the new company. The merger settlement looms over all of them. Fail to meet the film target and Miramax gets sold.

Where the paper stands

The paper backs neither De Luca nor Abdy personally but supports the principle that executives should not be pushed out simply because they speak up, and it opposes any rule or practice that would make speaking up a risk for small business owners or independent producers working within a larger corporate structure. The paper opposes regulation that protects the biggest players and raises the cost of entry for small ones, and it opposes any rule or practice that would make speaking up a risk for small business owners or independent producers working within a larger corporate structure.

This story shows the danger of a single executive’s word carrying weight over a whole company, and the paper believes small business owners should not face punishment for raising questions or concerns within their own structures. The paper opposes any rule or practice that would make speaking up a risk for small business owners or independent producers working within a larger corporate structure.

The reader should watch for signs that a company’s leaders are being punished for speaking up, and for any rule or practice that would make speaking up a risk for small business owners or independent producers working within a larger corporate structure.

Source material: “Ouster Rumors and a Tense Phone Call: Mike De Luca and Pam Abdy’s Final Weeks at Warners,” The Hollywood Reporter.

Hollywood · merger · movie industry · Streaming · Warners