Skydance Media has closed its $8bn merger with Paramount, creating a company under the moniker Paramount, a Skydance Corporation.
Paramount will now be restructured into three divisions: studios, direct-to-consumer and TV media, in an effort to set up what Skydance Media CEO David Ellison has called a “leaner, faster, smarter, and more agile company”.
Ellison will serve as Paramount chairman and CEO, while Jeff Shell, former CEO of NBCUniversal, is president.
This follows the US government’s approval of the merger on July 24.
Ellison said in an open letter: “Today marks Day One of a new Paramount. With the close of the transaction, we unite more than a century of iconic storytelling with the ingenuity and drive of a 15 year-old studio born in the digital era.”
He outlined “efficiencies” that would come into play to help save the $2bn of savings previously proposed. These include: transitioning the entire enterprise to a single technology platform for the first time to reduce spend, as well as “other initiatives to achieve efficiencies in costs associated with labour, real estate, procurement, and workflow”.
Paramount+ and Pluto TV will operate on a unified technology stack from 2026, “improving performance and driving significant financial savings”.
The letter attempted to placate creatives who may be worried in the face of rapidly developing AI advancements. “We also want to empower our creative partners with technology that will enable them to tell bigger, more compelling stories fuelled by human ingenuity.
“Technology is not—and never will be—a replacement for human creativity; rather, it serves as a powerful multiplier. From virtual production stages that unleash filmmakers’ limitless imaginations, to AI assisted localisation that brings shows to new language markets overnight, to a proprietary ad tech stack that maximises yield across streaming and linear platforms, we will thoughtfully integrate these tools into every aspect of our work.”
He also noted, “We recognise that realising our ambitions in today’s dynamic and fiercely competitive global market won’t be easy. 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. 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.
“We have the resources, talent and strategic clarity we need to build the world’s next generation media and entertainment company. And to get there, we will focus our efforts and investments on the areas with the greatest potential for growth and impact.”
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