The new owners of Paramount Global outlined their future plans for the company during a meeting with Wall Street analysts early Monday. Skydance CEO David Ellison, alongside former NBCUniversal CEO Jeff Shell (set to become Paramount’s president post-deal) and Paramount’s three co-CEOs, led the call.
They addressed inquiries from investors and showcased a fresh Paramount logo that seemed to blend elements of Skydance’s logo with the studio’s traditional design, reports the Hollywood Reporter.
Ellison kicked off the call by explaining the rationale behind the acquisition, emphasizing the goal of integrating Skydance as a specialized content company within Paramount. He highlighted Paramount’s reputation as a top-tier storytelling entity and expressed the intention to pivot towards a tech-savvy approach to adapt to the evolving market trends.
The discussion frequently touched on Skydance’s technological expertise, referencing partnerships with Oracle and Ellison’s guidance from Steve Jobs. Both Ellison and Shell emphasized the importance of technology in the streaming landscape, with Shell presenting a comprehensive strategy for content strategy optimization and platform development.
Shell also mentioned the possibility of forming strategic alliances with other industry players to strengthen Paramount’s position as a leader in the entertainment sector. The executives stressed their commitment to excelling in the direct-to-consumer (DTC) business and exploring innovative partnership opportunities to enhance their presence in the evolving streaming landscape.
Additionally, they highlighted their technological capabilities as a crucial asset for revitalizing the Paramount+ platform. Ellison outlined plans for overhauling the platform, focusing on enhancing features like the recommendation engine, advertising technology, and cloud services integration to expand their DTC operations.
Ellison expressed the importance of technology companies succeeding in the media industry and emphasized the need for their company to move in that direction as well. He highlighted the fusion of technology and media as crucial for navigating the current environment and setting a course for the future.
Shell outlined Paramount’s plan to manage the decline of their linear business while aiming to enhance certain cable brands. He mentioned identifying $2 billion in cost efficiencies as part of their strategy.
Shell discussed the necessity of running declining businesses differently to generate cash flow. He mentioned developing a detailed plan to manage the linear businesses effectively.
Moreover, he indicated that CBS would play a central role in their streaming strategy moving forward.
Shell also mentioned the possibility of Paramount divesting some non-strategic assets, depending on compelling offers from potential buyers.
Assets like BET Networks, Paramount’s local TV stations, and VidCon are reportedly open for sale.
Skydance and Paramount confirmed a deal wherein Ellison’s company would acquire National Amusements, giving them control of Paramount. In exchange, Paramount would acquire Skydance, with Ellison becoming CEO and Shell becoming president.
The deal includes a 45-day “go shop” policy allowing Paramount to explore other offers. If a better offer emerges and Skydance doesn’t match it, they would receive a break-up fee of $400 million.
In the interim, Paramount’s co-CEOs will continue to lead the company until the deal is finalized. Shell expressed confidence in the leadership team’s ability to effectively manage the business during this transition period.
During Monday’s discussion, Shell expressed admiration for his upcoming superior, stating that Ellison was the ideal individual to lead a media enterprise amidst the current chaos.
According to Shell, having a creative leader at the helm of a major Hollywood corporation is a rarity and crucial for success in an industry centered around artistic collaboration.
Shell further remarked that if one were to create the ultimate executive for a modern Hollywood firm, it would be someone like David Ellison, capable of engaging in both creative processes and technical aspects of the industry.
