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Big news in big Hollywood media: Paramount is merging with Skydance, and Oracle heir turned producer David Ellison is the mogul at the head of it all. It's been a drama going on for months, involving complex negotiations with the Redstone family who owned and controlled Paramount since 1994. One of the oldest majors, Paramount Pictures was originally founded in 1914. There would be lots to say about the brand, but to be brief, the company has been struggling and their streaming arm Paramount+ is bleeding cash every month. Cost cutting measures and layoffs are on the horizon with the new ownership. I got interested in new person at the head of it all. David Ellison is the son of Larry Ellison, co-founder of Oracle. He showed up in Hollywood 15 years ago with lots of trust-fund money saying he loved cinema. He did spend a lot of money, though is also a hard-working, ambitious, and apparently shrewd businessman who clearly stuck it out. He dropped out of university, tried acting (Flyboys), more significantly launched a production company. While he did have a few flops (Gemini Man, Geostorm), he also has a string of big successes particularly with Paramount (Mission Impossible: Ghost Protocol, Top Gun: Maverick), and quickly got into producing stuff for streaming companies (The Old Guard, The Tomorrow War, The Adam Project, Air, Grace & Frankie). He produces and has final cut on all projects apparently. If like me you wonder why more and more high budget movies seem so bland and rehashing of things we've all seen many times before, him and his media company Skydance seem worth taking a closer look at. For a different perspective, maybe the mogul is just producing what people will watch and spend money on (what the streaming services will, maybe same difference). Tom van der Linden over at Like Stories of Old published a new video essay titled "How Modern Audiences Are Failing Cinema" in which he explores what he calls "the commodification of relatability, self-righteous moralism in cinema, and constant stimulants." It takes effort to go out of our comfort zones; to stop mindlessly scrolling videos that are served to us by algorithms, watching the same TV channel news, or whatever Netflix is pushing to our home screen. Don't get me wrong, I definitely watch dreadful films all the time, I'm not better than anyone else. It is also totally worth deliberately going out of our comfort zones to get fresh ideas and perspectives. (testing things, not copying urls, sorry) NY Times:  Paramount Agrees to Merge With Skydance A Diminished Hollywood Welcomes a New Mogul Dumb Money No More: How David Ellison Became a Hollywood High Flier Fortune: Who is David Ellison? Heir to the Oracle fortune celebrates his biggest deal ever by clinching control over ‘Top Gun’ studio Paramount Like Stories of Old (Youtube): How Modern Audiences Are Failing Cinema

In a town known for storylines, Paramount's sale didn't disappoint. The media giant, which owns Paramount Pictures and CBS, has been in the news as an acquisition target since late last year. And just like its movies and television shows, Paramount's sale included twists, turns, and a slew of characters. But the final scene is here, it seems, as Skydance and Paramount have agreed to terms valuing the media giant at $8 billion. So with a deal wrapping up, what comes next for Paramount, and the wider streaming industry? I spoke to Peter Kafka to get some of his takeaways. More on Business Insider #media #paramount #streaming #hollywood #movies #television

#OperationFishbowl Skydance Poaches $4,000,000 Paramount cash each month for privilege of keeping buyer "engaged" (Jan. 14, 2025, Paramount S4, Page 120) The news of Paramount's pursuit by an aggressive private film production company, SkyDancer, had sent shockwaves throughout the media industry. The once revered and profitable company was now being chased by an upstart competitor, causing many to question the stability and future of Paramount. In a surprising twist, it was revealed that Paramount was not only being pursued by SkyDancer but was also paying a staggering amount of $4,000,000 per month to cover the expenses of this pursuit. Shareholders were left scratching their heads, wondering what this could possibly mean. The uncertainty sparked a flurry of speculation and panic within the industry, with some predicting the downfall of Paramount and others hailing the move as a brilliant strategic maneuver. Questions arose about how this would affect shareholders and their investments. As of January 2025, with the deal still not closed, Paramount had paid a total of $36,000,000 to SkyDance. This substantial sum was effectively keeping SkyDance alive, adding another layer of complexity to the situation. Only time would tell the true impact of this surprising turn of events. The once stable and unshakeable Paramount was now in the midst of a high-stakes battle for its future, and everyone was holding their breath to see who would come out on top. Key points of concern for shareholders and industry observers: 1. The long-term financial implications for Paramount 2. The strategic reasoning behind the monthly payments 3. The potential outcomes of the pursuit 4. The impact on Paramount's market position and reputation 5. The future of both Paramount and SkyDance in the evolving media landscape

NEWS OF THE DAY! Paramount's Potential Breakup: Sony and Apollo's $26 Billion Bid Sparks Regulatory Rumble 1.Paramount Global, a big entertainment company, might get split up if Sony Pictures Entertainment and Apollo Global Management buy it as per a report. 2.The plan involves selling CBS broadcast network, Paramount's cable channels, and its streaming service, Paramount+. 3.Paramount Pictures would join Sony's movie studio, while Sony and Apollo would keep Paramount's TV shows, movies, and intellectual property. 4.Sony and Apollo haven't discussed this plan with Paramount yet. 5.Shari Redstone, who owns Paramount, might not like the idea, but it's not a deal-breaker. 6.Splitting up Paramount could make it easier for the deal to pass regulations, especially because U.S. laws might not allow Sony to own a broadcast network entirely. 7.Paramount is also thinking about sharing its financial details with Sony and Apollo, which could help with their $26 billion buyout offer. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/g_2mH8Pe To familiarize yourself with the context of this news, kindly click on the following link. https://lnkd.in/gqrBwDR9 

Skydance Makes a Move to Possibly Acquire Paramount https://ift.tt/Mcps43I According to many news outlets, National Amusements, the parent company of Paramount, has reached a provisional agreement with the media conglomerate Skydance for a potential merger. We are very excited that there will continue to be five major studios (Disney, Fox, WB, Paramount/Skydance, Sony) because filmmakers need all the buyers they can get in the marketplace. The more buyers, the more movies will get made. I was pretty worried after various outlets suggested that merger discussions between the two companies had ceased. But we're back on. A recent report by CNBC revealed that a preliminary deal has been presented to a Paramount committee for review and voting. The impetus for Paramount's search for a buyer stems from concerns raised by Wall Street and industry observers regarding its financial stability. In response, the company recently pledged to reduce its budget by half a trillion dollars. Yes, you read that right. No word on how they will do that yet. Paramount encompasses CBS, MTV, and Comedy Central, but there's a chance some of these will be sold off or cut to save the aforementioned money. We'll keep you updated as this story progresses. via No Film School https://ift.tt/5HbCcta July 02, 2024 at 07:49PM

David Ellison's company Skydance will merge with Paramount Global placing the D. Ellison as chairman, CEO. His ability to produce profitable films is shown to be mixed with a few successes and failures. His father, Larry Ellison ponied up the $6 billion for the deal and as the majority stock holder, experts question if he will be involved and how much, specifically if his right wing politics will affect the CBS news division. The article notes that the younger Ellison has been putting money in the pockets of democrats. A bigger question is how silicon valley tycoons will be able to adapt to Hollywood and the TV/Film distribution game. CEO's of other legacy studios such as Warner Brothers and Disney have yet to figure out how to tackle the shift from cable to streaming and it's unclear how David will be able to lead Paramount in this effort, however it is possible that the family's background in tech could be a benefit as the other big tech companies who ventured into the TV game have been largely immune to the traditional studio's distribution woes by avoiding cable altogether. https://lnkd.in/g3V2Y9vF

From the Journal: Removing Bakish would add more confusion to an already-thorny sale process the company has been pursuing, and would raise questions about whether Paramount is in line for major changes in operational strategy. Bakish has told investors that executing the Skydance deal would be challenging. An independent committee of the board has been tasked with weighing the best course for all shareholders, and has another potential option that some shareholders say they would prefer: a $26 billion, all-cash offer for Paramount from Apollo Global Management, Inc.. The board had concerns about Apollo’s bid, including whether it could arrange financing for a deal, people familiar with the situation said. Since then, Apollo has discussed teaming up with Sony Pictures Entertainment on a potential bid. Redstone succeeded her father, media mogul Sumner Redstone, after a yearslong battle with his top lieutenants and associates, taking pole position in the empire in 2016. Tensions between Redstone and Bakish have been growing. She told associates that as Skydance talks were proceeding, Bakish was pursuing other deal conversations, including over a potential streaming partnership with Comcast, without keeping her or the board in the loop, say people familiar with the situation. Bakish and the cable giant had discussed a potential joint venture between Paramount+ and Comcast’s Peacock , The Wall Street Journal reported in February.  Redstone also has placed blame on Bakish for the company’s overall predicament and what she views as missed chances to strike sound deals. She was open to selling the Showtime premium channel, people close to her camp say. Bakish turned down SHOWTIME bids in recent years, and ultimately integrated its programming into a souped-up version of the Paramount+ streaming service. Bakish is credited in the industry for pushing Paramount into the ad-supported streaming world with the 2019 acquisition of Pluto TV, one of the leading players in the sector. While less glamorous than subscription services like Netflix or Disney+, services like Pluto cater to the tens of millions of consumers looking for free access to shows and movies, and have been popular with advertisers. Paramount’s fundamental business challenge is that #TV isn’t growing, but continues to be the biggest source of its profits. Last year, revenue in its TV and #media segment fell 8% to about $20 billion, while profits in the segment fell 12% to about $4.8 billion. Streaming posted healthy revenue growth of 37% last year, with a lot of customers joining Paramount+, but the streaming operations posted a $1.7 billion adjusted operating loss The company has said that Paramount+ will hit domestic profitability in 2025. Other big media companies like The Walt Disney Company and Comcast are also struggling to turn a profit on #streaming. Overall, revenue at Paramount grew 2% in 2023 to about $30 billion.

BUSINESS FOCUS: Paramount Television Studios, is shutting down as a $500 million cost cutting effort by parent corporation Paramount Global. A bitter but possibly necessary medicine (that they may yet grow to regret). A rather sad end to the division that was Desilu Production Studio, founded by Lucille Ball and Desi Arnaz, and that also produced Star Trek and most recently Jack Ryan series. This streamlining move will bring series creation back to CBS Studios, and a much-needed creative talent boost for the NCIS universe that has been plagued by confusion due to constant changes. However, there is a risk that this shift could limit the emergence of fresh and unconventional series ideas as CBS Studios tends to focus heavily on a single genre. This may result in valuable input from former Paramount Television creators being overlooked and fewer opportunities for new ideas to surface, given the reduced channels of communication for discussing TV series. Summary Analysis: the decision is necessary to achieve cost-cutting goals and improve management efficiency. Yet, there is a concern that it could impede the development of innovative series needed to thrive in the evolving landscape of Paramount Global. It is crucial to find a balance that preserves a culture of creative thinking and embraces risk-taking to continue fostering innovative ideas and opportunities in the television industry.

Paramount Global (NASDAQ: PARA) is expected to see continued strong growth in its direct-to-consumer division, while revenues across its TV media and film entertainment segments are expected to moderate. Dive into the analysis: https://hubs.li/Q02zl8830 #marketinsights

SKYDANCE WINS THE BATTLE FOR PARAMOUNT GLOBAL This is a major and huge transaction that will shake the foundations of Hollywood and the entire TV and entertainment industry. Many questions remain unanswered, but after many months of unfruitful negotiations, it seems that the path will soon become clear. For now, a significant investment in Paramount and its content has been announced. It remains to be seen what will happen with the Paramount+ platform. My impression is that this is good news for the sector: the merger will create a stronger player with greater financial capacity to acquire audiovisual products, although it is very likely that the initial decisions will involve drastic cost reductions, including the departure of hundreds? thousands? of executives. Here too, the market will have the option of accessing top-tier talent. Time will tell.