Skydance Media has officially closed its long-awaited $8 billion merger with Paramount Global. Starting Thursday, shares of the combined company will begin trading on the Nasdaq under the ticker symbol PSKY.
On Thursday, CEO David Ellison laid out some early details as he looks to turn Paramount from a struggling media giant into a technological leader in entertainment.
“We are in the midst of a generational change in our industry — and we understand Paramount has faced its own significant challenges, compounded by the reality of a merger process that stretched out over a considerable time period. But that time of uncertainty is now behind us,” he wrote in an open letter. “Moving forward, we will work with conviction and optimism to transform Paramount into a tech-forward company that blends the creative heart of Hollywood with the innovative spirit of Silicon Valley. By harnessing cutting-edge technologies to serve great storytelling, we will unlock the company’s enormous potential.”
New Paramount will focus on driving efficiency by reorganizing into three units: Studios, Direct-to-Consumer and TV/Media. It plans to transition the entire company to a single technology platform to reduce spend, with Paramount+ and Pluto TV set to be on a unified tech stack next year, and will look to achieve efficiencies in areas including labor, real estate, procurement and workflow, with a goal of exceeding the previously announced $2 billion in cost savings.
Ellison also said the company would look to scale its streaming services into “powerful, profitable global platforms,” redirect resources and increase content investment to deliver a greater volume of films, TV series, sports, news and games and leverage tools such as virtual production stages and AI-assisted localization — but said it would never be a replacement for human creativity.
“We will align rights, revenue and recognition to ensure Paramount is the first call for filmmakers, artists, sports leagues and journalists seeking a creative home that champions their work and amplifies it on a global stage,” Ellison said. “We will invest appropriately in our businesses given the size of their future opportunities — in some areas this may mean bold moves and increased investments, and in others it will mean scrutinizing spending to maximize margins and cash flow — all with the goal to drive shareholder value.”
He also recognized the “challenging period” for CBS News and said New Paramount would look to continue fostering a newsroom culture where journalists are “empowered, trusted and equipped to do their best work.”
“The years ahead will undoubtedly bring formidable challenges, but they will also usher in extraordinary opportunities,” Ellison’s letter concluded. “We stand at the threshold of a remarkable moment — and our strong conviction is that this company is poised to make the most of the possibilities ahead. Because when creative excellence, cutting‑edge technology and disciplined stewardship meet, great things happen — on the screen and on the balance sheet.”
New Paramount said it would give Wall Street a “more fulsome update,” including its financial outlook, with its third quarter earnings.
