David Ellison, a tech heir, along with his management team at Paramount, conveyed a signal to Hollywood: a fresh chapter is beginning.
A little over a week after receiving the keys to the struggling media company, Ellison and his senior leaders met with journalists at the Paramount Pictures studio on Wednesday to demonstrate their commitment.
Ellison and his group will be located in Hollywood — not New York — and they intend to examine the entertainment sector from a California perspective by making significant investments, embracing technology, and expanding well-known franchises such as "Top Gun," "Star Trek," and "Yellowstone."
Last week, Ellison's Skydance Media, along with its investor RedBird Capital Partners, finalized an $8-billion acquisition of the company that encompasses CBS, Comedy Central, MTV Networks, Showtime, and the Melrose Avenue film studio.
One of our top focuses is truly bringing Paramount back to the position of being the leading choice for the most skilled artists and directors globally," Ellison stated. "In a straightforward way, exceptional filmmakers create outstanding films.
A return to form for Paramount would be greatly anticipated.
The movie studio has faced years of insufficient funding and frequently missed out on opportunities with top Hollywood directors. The studio intends to debut eight films in the coming year, but this limited number is not enough to support a successful theatrical film operation, according to Paramount officials.
The goal is to almost double the quantity of feature films to 15 and, in the long run, 20 movies annually.
Ellison, who is 42 years old and serves as chairman and chief executive, is keen to put behind him his time as a political target, after the extended regulatory examination of the deal and President Trump's legal action against CBS over its alterations to a "60 Minutes" interview with Kamala Harris from last fall. Paramount resolved the lawsuit this month, agreeing to a payment of $16 million.
Several days later, CBS informed Stephen Colbert that it would be canceling his late-night talk show in May — leading to strong reactions from some fans and fueling rumors that the show was cut to please Trump. CBS has stated that the decision was "completely" driven by financial factors; the program has been operating at a loss.
Programming will be developed with a wide audience in mind, Ellison and his senior team stated. Ellison mentioned that his objective is to shift the company away from political differences in order to attract a larger audience.
One of the things I consider significant is that I don't wish to make this company political," Ellison stated. "We are primarily an entertainment company, and I truly believe that if you're alive, you are our audience. We aim to be in the business of communicating with everyone.
For Ellison, films have always been a passion. He shared memories of his childhood when he, his mother, and sister would go to the movies or choose from their large collection of video cassette tapes at home.
He plans to "substantially increase" the volume of content the studio creates and has appointed his long-time assistant Dana Goldberg and Josh Greenstein, a former Sony executive, as co-chairs of Paramount Pictures. The studio will focus on major intellectual properties like "Star Trek," "World War Z," and "Transformers," with Goldberg stating that "Star Trek" is a top priority for the company.
Paramount executives are also showing interest in original films led by directors. Last week, Paramount announced it has acquired an original project titled "High Side," directed by James Mangold, who previously worked on "A Complete Unknown," and this project brings him back together with actor Timothée Chalamet.
Furthermore, Paramount Pictures intends to approve family-oriented films, using classic titles such as "The Goonies," "Gremlins," and "Night at the Museum" as references, according to Goldberg. There is also enthusiasm for R-rated comedies, horror genres, and narratives that resonate with Middle America.
Paramount does not intend to produce inexpensive movies for its Paramount+ streaming service, according to Cindy Holland, the newly appointed leader of streaming at Paramount.
"The films we produce will be intended for cinemas," Ellison stated, noting the cultural importance of creating movies for the big screen.
Ellison also commended actor Tom Cruise, whom he encountered when he established his Skydance Media company in 2010. Skydance collaborated on "Top Gun: Maverick" and the latest "Mission: Impossible" films. Goldberg shared how she and Greenstein contacted Cruise following Paramount's announcement of its new leadership setup.
It was to express our gratitude for his significant role in Paramount's history, its current status, and how crucial he is for Paramount's future," Goldberg said. "'Top Gun 3' is a top priority for us.
The updated corporate ownership setup allows the family of Larry Ellison (David's wealthy father) and RedBird to focus on shaping the company's future, rather than prioritizing short-term profits.
The Ellison family currently holds 50% of the company, while RedBird owns 20% — a strong position. Regular investors possess 30% of the shares in the newly formed company. The stock increased over 36% on Wednesday, reaching $15.
The gathering featured Ellison's partner in investment, Gerry Cardinale, founder of RedBird, who expressed his belief in Paramount's future.
Cardinale mentioned that he sent two of his senior executives to join the company — Andy Gordon, a former Goldman Sachs banker who is now Paramount's chief operating officer and chief strategy officer, and Jeff Shell, a former NBCUniversal executive who now serves as Paramount's president — to highlight the significance of the rebuilding effort.
"I'm wagering my company and professional future on this transaction," Cardinale stated.
On Wednesday, long-time Paramount investor Mario Gabelli filed a lawsuit against Redstone and Paramount, claiming the deal setup favored shareholders other than Redstone, who received an increased value for their stock.
As part of the agreement, the Redstone family received $2.4 billion for their National Amusements Inc. company, which owned the majority stake. Once their significant debts are settled, the family is expected to retain $1.75 billion. B-class shareholders of Paramount were offered $15 per share.
Skydance and RedBird have assured investors that they will identify $2 billion in cost reductions, leading to more financial constraints and job cuts. Shell mentioned he did not wish for Paramount to turn into a company with ongoing layoffs, stating the intention was to carry out one restructuring and then conclude the process.
Executives also displayed no interest in separating the cable channels, in contrast to Comcast or Warner Bros. Discovery, which are getting ready for divestitures. Shell mentioned that the reduced standing of the channels offers the company chances to revitalize those brands.
In their initial week, Ellison and RedBird have placed significant wagers. On Monday, the company announced it would invest $7.7 billion over seven years to secure U.S. streaming and television rights for UFC mixed-martial arts events on the Paramount+ streaming platform and CBS.
Furthermore, in July, Paramount committed to paying $1.25 billion over five years to the creators of Comedy Central's "South Park." A different agreement with Trey Parker and Matt Stone ensures the show will only be available on Paramount+.
When questioned about which Paramount assets were undervalued, Ellison discussed the extensive influence of CBS, which recently concluded the regular television season as the top-rated broadcast network in prime time for the 17th straight year. He also highlighted CBS' partnerships with the NFL, Masters golf event, and NCAA March Madness.
Gordon stated, "I genuinely believe each asset is undervalued in this context."
This narrative first was published inLos Angeles Times.