The $8 billion merger between Paramount and Skydance, finalized early Thursday, reshapes Hollywood’s power structure, ending the Redstone family’s decades-long control of CBS and Paramount Pictures.
Skydance, led by David Ellison—son of tech mogul Larry Ellison—now steers the company, officially named Paramount, a Skydance Corporation. The merger brings stronger financial backing and a new executive team, aiming to revitalize Paramount as a competitive force in an industry dominated by Netflix, YouTube, Disney, and Amazon, with others fighting for profitability and relevance.
The deal could spark new mergers or streaming bundles.
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| David Ellison |
In an open letter, Ellison said New Paramount would 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 $2 billion in cost savings.
Paramount faces steep challenges: its cable networks, a primary revenue source, are declining rapidly. New leadership targets $2 billion in cost savings, a tough goal after multiple layoffs and budget cuts. Emerging AI disruptions add further complexity.
Also, Morale is strained following a $16 million settlement with President Trump over a “60 Minutes” interview, unsettling CBS News staff. Questions linger about the cancellation of “The Late Show With Stephen Colbert,” with some suspecting political motives despite Paramount’s financial rationale. Key talent, including Jon Stewart and “South Park” creators, have openly criticized decisions made during the merger process.