After Paramount’s board of directors voted last Sunday to approve the merger proposal from Skydance Media, Skydance CEO David Ellison is all but certain to become the executive in charge of the Paramount Global empire.
Ellison has said that he plans to keep Paramount operating as an independent studio and continue its tradition of delivering major film releases to theatres. Rival suitors Sony and Warner Bros. would have merged Paramount’s studio into their existing operations, much in the same way that Disney folded 20th Century Fox into its studios after that 2019 acquisition.
The Disney – 20th Century merger resulted in thousands of job losses, and a reduction in the number of theatrical releases. Five years later, it has become almost universally viewed as having a net negative impact on the movie business. The potential for a replay of this with Paramount was seen as a significant risk to the industry.
Ellison spoke to Wall Street analysts on Monday to outline his vision for the Paramount’s future. He described his intention to evolve key Paramount assets into “tech hybrids,” a goal that Ellison may be able to achieve with the help of his father Larry Ellison, the CEO of tech giant Oracle. Ellison also identified “$2 billion in cost efficiencies” from Paramount’s older business, signaling a significant number of layoffs ahead. Analysts responded in lukewarm fashion, with Paramount’s stock falling 5% this week.
Ellison did not offer many other details beyond those two specific areas, leaving many questions unanswered about the future of Paramount’s various assets. But exhibitors are “cautiously optimistic” that Paramount will continue its role as a producer of big franchise hits.
Paramount’s blockbuster film series include TRANSFORMERS, MISSION: IMPOSSIBLE and TOP GUN. Ellison and Skydance worked together to finance and produce TOP GUN: MAVERICK, a film that many have credited as “saving” the movie industry. Hollywood hopes that Ellison can continue to perform in that role through his leadership of Paramount.