Skydance Media has officially closed its $8 billion merger with Paramount Global, forming Paramount, a Skydance Corporation, and installing David Ellison as CEO and chairman. Shares of the newly combined entity begin trading today under the ticker PSKY, a symbolic reset after more than 12 months of M&A whiplash and regulatory obstruction.
Now the harder part begins.
New Company, New Structure
Ellison wasted no time outlining a sweeping vision for the company in his first public letter to investors and the industry, sent Thursday morning as the deal closed. Paramount will now operate across three divisions:
- Studios
- Direct-to-Consumer
- TV Media
It’s a cleaner structure, reflecting Skydance’s strategy of unifying traditional content production with future-facing distribution. But the letter also signals that nothing is sacred: each business will be evaluated based on its long-term value and relevance in the digital ecosystem.
Paramount+, Pluto TV, and the Streaming Roadmap
Streaming is a top priority. Ellison promised increased investment in exclusive content, while also stressing profitability. He singled out sports as a core engagement driver for Paramount+, both to reduce churn and boost ARPU.
Starting next year, Paramount+ and Pluto TV will operate on a unified tech stack—a notable backend integration that’s expected to reduce costs and elevate the consumer experience across both services. The plan is to better position Pluto TV as a “top of funnel” discovery layer that pushes users toward Paramount+.
Ellison’s approach borrows from tech playbooks: streamline infrastructure, cross-leverage platforms, and reduce redundancy wherever possible.
AI, But With Guardrails
Ellison also addressed one of the buzziest—and most controversial—topics in media right now: AI. His framing is cautious but forward-looking. “Technology is not—and never will be—a replacement for human creativity,” he wrote. Instead, AI will be used as a “powerful multiplier,” with examples like AI-assisted localization, ad-tech optimization, and virtual production.
This sounds like an olive branch to creative stakeholders—and a nod to investors looking for operational scale.
The Redstone Era Ends
As Skydance moves in, Shari Redstone exits. Her $1.75 billion buyout from National Amusements effectively ends the Redstone family’s decades-long control of Paramount. The Ellison family, backed by RedBird Capital, now holds the reins.
Also in: former NBCU CEO Jeff Shell (now president of Paramount), ex-CNN boss Jeff Zucker in a strategic role via RedBird, and a slew of senior execs from both Skydance and Paramount.
Lingering Legal Clouds
Not everything’s resolved. Paramount still faces multiple investor lawsuits over the sale process, including claims that it unfairly favored Skydance’s bid. And while the FCC finally signed off on the license transfers, that only came after Paramount settled a civil lawsuit with Donald Trump for $16 million—an unusual and highly politicized backdrop for a media merger.
What’s Next?
The new leadership team is expected to detail more of their roadmap during a press conference at Paramount’s Times Square headquarters today. A fuller financial outlook is coming with Q3 earnings.
But even without those numbers, Ellison’s strategy is clear: lean into streaming, make tough calls on legacy assets, integrate technology (including AI) where it drives value, and rebuild investor trust by focusing on sustainable growth and long-term returns.
The old Paramount is gone. The new one starts today.
