Following Skydance Media‘s landmark merger agreement with Paramount Global, Skydance Media’s David Ellison acknowledged the need for patience during the road ahead before the deal is expected to close. The Paramount Global stable includes Paramount Pictures, CBS, MTV, Nickelodeon, and Showtime.
Skydance Media CEO David Ellison sketched out a vision on Monday for Paramount Global as a technology media hybrid company at a time Hollywood has been competing for attention with tech giants moving into the entertainment business.
David Ellison’s vision for Paramount’s future
Speaking to analysts one day after the on-again-off-again Skydance and Paramount merger that was finally confirmed on Sunday evening. David Ellison. CEO of Skydance outlined a vision to build a leading feature, television, animation, sports and games company, and rebuild the Paramount streaming platform.
David Ellison. CEO of Skydance talked about relationship between art and technology.
“The art challenges the technology and the technology challenges the art,” said Ellison, recalling a favorite Jobs quote. “We believe that understanding of the symbiotic relationship between art and technology is essential to be able to meet this moment.”
Skydance and Paramount merger
A “key thesis” behind the merger of Skydance, a media company launched in 2010 to capitalize on the rise of streaming media, with the century-old Paramount whose roots extend into the silent film era, is to position the company to better meet the demands of a changed market. Ellison discussed making changes to the Paramount+ streaming service and hinted at using artificial intelligence.
“There are a lot of technology companies that are rapidly expanding into media,” said Ellison. “We believe it is essential for Paramount to be able to expand its technology prowess, to be both a media and technology enterprise.”
Entertainment and technology
Ellison told investors he would work to improve the algorithmic recommendation engines that Paramount uses, hoping subscribers will spend more time on the streaming service and that fewer will cancel.
He also proposed upgrading the advertising technology to give marketers more information about which audiences they reach.
A slide deck accompanying the investor call described how artificial intelligence would “turbocharge content creation” and help drive “efficiencies” and streamline operations.
Endeavor CEO Ari Emanuel said “One of the things that people are underestimating” about Ellison “is his sense of tech, compared to some of the other guys … maybe with his father’s help or just his upbringing.” Ellison’s father is Oracle co-founder Larry Ellison.
Importance of tech in Paramount and Skydance merger
Ellison’s tech pedigree factored into the decision by Paramount controlling shareholder Shari Redstone to strike a deal with Skydance, a longtime production partner of Paramount.
“Skydance is well aware of what we have accomplished over the years and it is for that reason that they have pursued a combination with Paramount,” as per Redstone’s note.
“They have a clear strategic vision for the future and the resources to build on Paramount Global’s competitive advantages to drive the company’s success.”
Ellison is using AI in a way that he described as “really pushing the boundaries of what’s possible in game-play.”
Investors bullish on Paramount Global
As per Jeff Shell, the former NBCUniversal chief executive who will join the newly merged company as president Ellison is well equipped to help navigate the entertainment industry’s technological change, “as somebody who writes scripts and is in table reads and was an actor at one point and also, by the way, can code.”
“David is one of one,” said Shell. “And he’s going to define … the identity of new Paramount.”
The $8bn merger deal sees Skydance and the Skydance Consortium pay $2.4bn for National Amusements, which holds the Redstone family’s controlling stake in Paramount Global.
Skydance will use $1.5bn to pay down Paramount Global debt. The merger values Skydance at $4.75bn, and the new company at $28bn.
