Paramount-Skydance merger crowns a new Hollywood mogul

Movie producer David Ellison is set to become the Chairman and CEO of Paramount following its merger with Skydance Media.

Former NBCUniversal chief Jeff Shell will become Paramount’s president post-merger.

Ellison, son of Oracle co-founder Larry Ellison, will work towards restoring the studio, known for The Godfather and Titanic, to its former glory. His Skydance is behind movies like ??Top Gun: Maverick and Mission: Impossible – Dead Reckoning.

The complex two-step merger will help a struggling Paramount, which has seen dwindling revenues since the arrival of OTT platforms. Even its streaming service, Paramount+, couldn’t turn things around for the company.

Ellison envisions turning Paramount into a media and tech hybrid to compete with Disney, Netflix and Warner Bros. Discovery. His team plans cost-cutting measures, asset sales and layoffs to save $2 billion and achieve cash-flow positivity by 2026.

Skydance will use this merger to expand its influence.

The deal
Skydance will invest $2.4 billion to acquire Paramount’s parent company, National Amusements, and another $4.5 billion in cash to buy back shares.

It will also inject $1.5 billion into Paramount, which the company can use to pay off its debt.

The mounting losses have forced one of the oldest studios to reduce programming spending, creating a vicious cycle of cord-cutting and revenue loss.

Ellison wants to increase Paramount+ subscriptions and intends to use generative AI. At 41, he will join the ranks of Disney CEO Bob Iger and Warner Bros. Discover Chief David Zaslav.