David Ellison formally introduced himself to the industry and Wall Street as chairman CEO of the new Paramount in a letter posted as the deal closed that outlined where the new team will focus and some of its plans.
The company will operate with three divisions. Studios, Direct-to-Consumer and TV Media.
He touched on a “thoughtful” use of AI integrated into across businesses, on supercharging streaming, spending on content, focusing on sports and investing in media networks “appropriately based on the future business opportunity.”
Ellison and and other executives will be hosting their first press conference today at Paramount Global’s Times Square headquarters to offer more details.
The Skydance Media-Paramount merger formally closed this morning after more than a year. Shares of the company will start trading today under the ticker PSKY.
“Technology is not—and never will be—a replacement for human creativity; rather, it serves as a powerful multiplier. From virtual production stages that unleash filmmakers’ limitless imaginations, to AI‑assisted localization that brings shows to new language markets overnight, to a proprietary ad‑tech stack that maximizes yield across streaming and linear platforms, we will thoughtfully integrate these tools into every aspect of our work,” he wrote.
On the TV Media side, “our challenge is to reinvent our portfolio of brands for a non-linear world. We plan to invest appropriately based on the future business opportunity, thereby maximizing cash flow so we can reinvest in our growth businesses.”
No area will be “more pivotal to our future than the evolution of our streaming services, which we will scale into powerful, profitable global platforms. We are committed to increasing investment in premium, exclusive content because we understand that exceptional storytelling is the single biggest driver of subscriber growth and loyalty. In particular, sports serve as a powerful engine for deep audience engagement, ultimately helping to reduce churn and boost ARPU over time.”
He said that starting next year, Paramount+ and Pluto TV will operate on a unified technology stack, improving performance and driving significant financial savings. “Most importantly, this integration will elevate the consumer experience across our services—enhancing our recommendation engine, accelerating delivery speed and quality, while also giving us the opportunity to position Pluto TV as the ‘top of the funnel’ to attract new customers to Paramount+.”
For investors, he said, “Our financial north star is to maximize the long-term value of the company. We will invest appropriately in our businesses given the size of their future opportunities—in some areas this may mean bold moves and increased investments, and in others it will mean scrutinizing spending to maximize margins and cash flow—all with the goal to drive shareholder value. We plan to give a more fulsome update, including our financial outlook, with our Q3 earnings.
“We understand the weight of stewarding an iconic company that touches the lives of hundreds of millions worldwide and plays a vital role in shaping our shared culture. Above all, everything we do will be rooted in trust, guided by facts, and aligned with the core values that define us as a company,” he wrote.
“Inevitably, challenging decisions and difficult trade-offs lie ahead. We will face them head on, maintaining transparency by openly sharing the rationale behind our choices and how they serve the best interests of our stakeholders.”
