Skydance Media and Paramount Global have officially completed their merger, forming a new company: Paramount, a Skydance Corporation. The combined company begins trading Thursday under the Nasdaq ticker “PSKY.”
With backing from the Ellison family and RedBird Capital, the deal aims to reshape the future of the Paramount brand by combining its legacy entertainment assets with Skydance’s tech-driven and content-rich approach.
David Ellison Leads New Paramount
David Ellison, now Chairman and CEO of the new company, said the focus will be on supporting creators, advancing technology, and delivering more content across platforms. Ellison described this moment as “Day One of a new Paramount,” emphasizing the need to modernize operations and storytelling while respecting the company’s legacy.
Ellison said the company will:
- Increase production of films, TV shows, sports, and games
- Expand global streaming with Paramount+ and Pluto TV
- Consolidate tech platforms to reduce costs and speed up decision-making
“Today marks an exciting and pivotal moment as we prepare to bring Paramount’s legacy as a Hollywood institution into the future of entertainment. My vision is to honor exceptional storytelling while modernizing how we make and deliver content to support the world’s top creative talent, enhance experiences for audiences worldwide, and create sustainable value for our shareholders,” he said.
Ellison added: “It is truly an honor and a privilege to help lead this iconic brand into its next chapter. My experience at Skydance and across all levels of production has shown me what it takes to bring great stories to life — and just how powerful it is when visionary creators are supported by strong leadership and a clear mission. With a deep understanding of the industry and a strategic approach to growth, we will stay grounded in creative excellence, embrace cutting-edge innovation, and continue delivering the entertainment, news, and sports experiences that connect with audiences worldwide. Together, we have the opportunity not only to shape Paramount’s future, but also to play a meaningful role in where our industry is headed — and we can’t wait to get started.”
Strategic Shift to Three Business Units
The company is being restructured into three areas:
- Studios (film, TV, animation, games)
- Direct-to-Consumer (streaming services)
- TV Media (CBS, linear cable brands)
Ellison says this will help the company be more agile, increase efficiency, and better serve audiences.
RedBird Capital Backing Long-Term Play
RedBird’s Gerry Cardinale said this merger reflects confidence in the potential of intellectual property and modern content production. RedBird has been working with Skydance since 2019 and will provide financial and strategic support.
“Our investment in Paramount and long-term partnership with the Ellison family reflects our deep conviction in the value of world-class intellectual property and the potential to unlock substantial growth as these businesses navigate technological disintermediation and evolving consumer preferences. We’ve been collaborating with David Ellison for the last 15 years and made our first investment in Skydance in 2019. Over this period, we’ve seen the power of an owner-operator model that integrates technological sophistication with a talent-friendly passion for producing great original content,” said Cardinale.
Cardinale added: “We have evaluated investing in this type of media and entertainment in Hollywood for the last 25 years, but it was only after our investment in Skydance that we began to develop tangible conviction around a performance-based approach to investing in diversified content production. The track record that David and the team at Skydance have established has prepared them for this opportunity, supported by our operating and investment team at RedBird. This is a transformative opportunity to embrace Paramount’s 113-year-old legacy as one of the most iconic Hollywood institutions and help transition it for today’s evolving technological landscape.”
Streaming Push, Cost Cuts Coming
In his message posted to the official Paramount website, Ellison went over more of the details. Paramount+ and Pluto TV will soon operate on the same tech stack. The company plans to cut costs through:
- Labor, real estate, and procurement reductions
- A new unified tech platform
- Streamlined production and licensing
The target is to exceed $2 billion in real savings.
Creative Focus with Tech Support
The plan is to back creatives with tools, not replace them. Ellison pointed to tech like AI-assisted localization, virtual production, and proprietary ad-tech as ways to expand reach and improve output.
Commitments Across the Board
In his letter, Ellison also addressed key stakeholders:
- Employees: promised transparency during restructuring
- Viewers: committed to improving entertainment, sports, and news offerings
- Creative partners: offered strong collaboration and global amplification
- Investors: pledged long-term value and performance-driven strategy
Outlook and Next Steps
Paramount leadership will give more financial guidance during its Q3 earnings report. The merger is seen as a turning point for the company to compete in a fast-changing media industry.
“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,” Ellison wrote. “By harnessing cutting-edge technologies to serve great storytelling, we will unlock the company’s enormous potential.”
