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Paramount finds a new home and hope for the future
The Paramount logo is displayed at Columbia Square along Sunset Boulevard in Hollywood, Calif. on March 9, 2023.
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Patrick T. Fallon
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AFP via Getty Images
)
Topline:
Paramount has tentatively been sold to David Ellison and Skydance, which means drastic changes for the media conglomerate, including sharp cost reductions and a focus on embracing technology.
Why it matters: David Ellison is set to take the reins at Paramount after current controlling shareholder Shari Redstone agreed to a $2.4 billion pact as part of a complicated transaction. (The deal is slated to close in the third quarter of 2025.) Paramount, one of Hollywood’s oldest and most successful entertainment companies, has been in disarray after trying and failing to compete as entertainment shifted from the cable era, where it was strong, to the digital one, where it’s struggled. Ellison’s arrival could swing fortunes around, at least those within the company hope.
Where the cuts are coming: Ellison and new president Jeff Shell have mapped out $2 billion in cuts and cost savings, which includes an already pledged $500 million that current management intends to execute. Once Ellison takes over, the new Paramount leadership will implement an additional $1.2 billion in cost “efficiencies” starting in late 2025 and through 2026. In particular, layoffs will take effect, and Paramount’s cable networks — Comedy Central, MTV, Showtime and such — are going to be most significantly affected.
Renewed focus: One thing Ellison stressed constantly was his vision for Paramount to become a “tech hybrid,” which will involve things such as the “cloud,” AI and a rebuilt Paramount+ streaming service. In terms of specific areas of the company, CBS and Paramount+ — surprisingly — look like they’ll still have a future, while Ellison’s love of movies and the viability of generating revenue over time from theatrical films will contribute to Paramount Pictures remaining fully operational.
For more... read the full story on The Ankler.
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