The merger between Paramount Global and Skydance Media has been approved, and David Ellison, the incoming chairman and CEO of the newly formed Paramount Skydance Corporation, is outlining a bold future for the company.
In a recent press briefing, Ellison shared plans for a strategic overhaul of “New Paramount,” focusing on streaming consolidation, premium content, and shedding non-core assets like the National Amusements theater chain.
A “Soft Merger” for Streaming Dominance
Central to Ellison’s strategy is a “soft merger” of Paramount’s streaming platforms, Paramount+ and Pluto TV. Over the next year, the two services will unify their technological infrastructure while retaining distinct front-end identities.
This approach preserves Paramount+’s premium subscriber base and Pluto TV’s ad-supported audience while cutting development costs. “The audience won’t notice a thing, but the savings will be significant,” Ellison said, emphasizing profitability in a competitive streaming market.
Content as King: NFL, *South Park*, and Cable’s Staying Power
Ellison stressed that content is the cornerstone of New Paramount’s strategy. Flagship properties like *South Park*, NFL broadcasts, and key TV shows will drive engagement across streaming and traditional platforms. Unlike competitors divesting cable networks, Ellison sees value in retaining MTV and Comedy Central.
Shows like *The Daily Show* with Jon Stewart, which enjoy strong viewership and YouTube reach, remain vital for audience conversion.
The NFL partnership will also be leveraged to attract new streaming subscribers, strengthening Paramount’s portfolio.
Divesting Theaters and Other Assets
Not all legacy assets are safe. Ellison signaled plans to sell the National Amusements theater chain and hinted at potential divestitures like CBS’s New York broadcasting hub, though these remain unconfirmed.
This reflects a pragmatic focus on high-growth areas like streaming and content production, mirroring strategies of competitors like Warner Bros. Discovery. However, Ellison cautioned that initial plans could evolve.
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A New Era for Paramount
Ellison’s vision blends modernization with focus. By integrating Paramount+ and Pluto TV’s backend, prioritizing marquee content, and pruning assets, he aims to position New Paramount as a leaner, competitive player.
Backed by $8 billion from the Ellison family and RedBird Capital Partners, plus $1.5 billion for Paramount’s balance sheet and $2 billion in projected savings, the merger sets the stage for transformation. As the deal nears its mid-2025 close, Ellison’s strategy will determine whether New Paramount can lead the evolving media landscape.
