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Paramount-Skydance Merger: 5 Burning Questions About the Deal


Is Skydance Media the forward-looking innovator that Paramount Global needs to save the company?

Shell said the Skydance team, working in conjunction with consulting firm Bain & Co., is targeting at least $2 billion in annualized cost cuts that can be made at the company. “We have no reason to doubt this level of savings, and we think the personnel redundancies that Paramount and Skydance have with their studios and production provide ample room to cut costs,” Matthew Dolgin, senior equity analyst at Morningstar, wrote in a July 9 research note. On the streaming front, Ellison said the combined Skydance-Paramount will work with unspecified “technological partners… that we do intend to bring into that.” Shell also mentioned that Paramount’s current management team has “come up with a plan potentially on the international business, which is likely to be executed between now and closing, which we also think will be quite compelling to the cash flow generation of the DTC segment.” Chris McCarthy, president and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks, at the June 25 town hall told employees that on the international front, “we are advancing talks with potential partners that will significantly transform the scale and economics of the service making it profitable and driving long-term value.

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