A New Era for Paramount: What's Next?

A big change is happening at Paramount. The company has joined forces with Skydance Media in a deal worth $8 billion. This merger is set to reshape Paramount into a tech-savvy entertainment giant. The new company will be led by David Ellison, who will serve as both chairman and CEO.

The Merger Details

The merger means Paramount will be split into three main parts:

Studios
Direct-to-consumer services
TV media

Ellison promises to save $2 billion by combining operations and moving everything to a single tech platform. He's confident they can do even better than that.

Vision and Goals

Ellison shared his vision in a letter. He wants to blend Hollywood's creativity with Silicon Valley's innovation. The goal is to use new technology to tell great stories and unlock the company's full potential.

Legal and Leadership Changes

The deal got the green light from the FCC after Paramount settled a lawsuit with former President Donald Trump. This settlement involved a "60 Minutes" interview with Kamala Harris. The merger was first announced over a year ago, in July 2024.

Ellison praised CBS News and "60 Minutes" in his letter. He highlighted the show's commitment to accurate and trustworthy reporting. However, there have been recent changes at "60 Minutes," with a new executive producer taking over after the previous one left due to concerns about interference.

Leadership Shifts

The merger also means big changes for the company's leadership. Larry Ellison, David's father, and other investors have bought Shari Redstone's shares in National Amusements Inc. Redstone is stepping down from the board, and the Ellison family will now control Paramount.

Paramount will continue to be publicly traded, but now on the Nasdaq under the ticker symbol "PSKY". Starting in 2026, Paramount's streaming services, like Paramount+ and Pluto TV, will use the same technology.

Future Plans

Ellison is still figuring out what to do with Paramount's cable offerings. He mentioned reinventing the portfolio for a world where people watch TV on their own schedule. The focus will be on maximizing cash flow to invest in growth.

Leadership Team Changes

There are also big changes in the leadership team. George Cheeks, former CEO of CBS, will stay on as chair of the TV media segment. However, other top executives like Chris McCarthy and Robbins are leaving. Ellison has already picked his new senior leadership team.