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| David Ellison is the new head of Paramount Skydance. CHARLY TRIBALLEAU/AFP via Getty Images |
The long-awaited $8 billion merger between Skydance Media and Paramount Global has officially closed, ushering in a new era for the iconic media company. Now under the control of tech billionaire Larry Ellison and his son David Ellison, Paramount finds itself at the intersection of innovation and reinvention at a time when legacy media companies are struggling to adapt.
David Ellison, now CEO and Chairman of the restructured company, brings not just a fresh leadership team but also a bold vision: a fusion of traditional storytelling and cutting-edge technology. That vision is backed by significant capital and a willingness to challenge old business models. However, the road ahead is riddled with complex decisions and uncertain terrain from the declining linear TV landscape to political scrutiny and global streaming competition.
So what comes next for CBS, MTV Networks, Paramount Pictures, and the rest of the company’s vast portfolio? These six pressing questions will help shape the success or failure of the new Paramount-Skydance enterprise.
1. Can Technology Actually Transform Paramount?
David Ellison has positioned this merger as more than just a financial rescue; he sees it as a fundamental reinvention of what a media company can be. Drawing inspiration from Apple co-founder Steve Jobs, Ellison emphasized the symbiotic relationship between technology and storytelling during the deal announcement.
He envisions Paramount not just as a media giant but as a "tech and media enterprise." Part of that includes integrating AI and machine learning to improve how content is developed, distributed, and recommended. For example, Paramount+ will get an algorithmic upgrade to deliver more personalized viewer recommendations. Meanwhile, cloud infrastructure developed in collaboration with Oracle (Larry Ellison’s company) has already been used to power animation studios, cutting costs and streamlining production.
Still, the impact of this tech-first approach remains to be seen. While AI has made inroads into Hollywood, its actual influence on storytelling quality and cost reduction is still evolving. It’s one thing to build more efficient pipelines it’s another to consistently create hits that resonate with global audiences.
2. Can Paramount+ Break Into the Top Tier of Streaming?
With 78 million subscribers, Paramount + is firmly in the race, trailing behind the likes of Netflix, Disney+, and Max. It’s buoyed by NFL games, CBS mainstays like "NCIS," and crowd-favorites like "Star Trek" and "Yellowstone." The platform recently achieved profitability a promising milestone but it only accounts for 2% of total streaming viewership according to Nielsen.
One of the merger's key promises is a reinvigorated streaming content strategy. Paramount recently acquired global streaming rights to "South Park" in a $1.5 billion deal, signaling that the company is willing to spend big on proven content.
Crucially, Ellison has tapped Cindy Holland a former Netflix executive instrumental in launching original shows to lead Paramount+ content strategy. That move has generated excitement in creative circles, with agents saying they’re holding off on pitching shows until Holland officially starts.
Still, Paramount+ faces an uphill battle. Streaming success today requires not just big content libraries, but exclusive hits that dominate pop culture. The question is whether Ellison and his new team can fund and develop the next “Stranger Things” or “Game of Thrones”-level sensation.
3. How Will Paramount Manage the Decline of Linear TV?
Linear television once the crown jewel of media companies is rapidly fading. Viewership continues to plummet as audiences migrate to streaming platforms, and advertisers are following suit.
Paramount’s holdings include CBS, BET, Showtime, and a portfolio of legacy channels. Some of these, like CBS, are still profitable, especially with NFL broadcasting rights. Others have been on the chopping block before and may be again. Industry insiders believe Ellison will pursue asset sales or spin-offs to raise cash and reduce exposure to declining channels.
Still, there’s value in keeping CBS. It remains one of the most-watched networks in the U.S. and offers leverage in carriage negotiations. But shedding or downsizing other properties like BET or Showtime may free up resources to boost streaming initiatives.
As Chris Vollmer of consultancy firm MediaLink noted, "If you’re committed to building a streaming business, you have to put as much firepower behind it as possible."
4. What Role Will Politics Play Especially Trump?
The merger raised eyebrows with its unusual $16 million settlement of a lawsuit brought by former President Donald Trump over a "60 Minutes" segment. Critics say the lawsuit had no legal standing and that the settlement may have been a political olive branch to clear the merger through regulatory channels.
This, combined with the recent cancellation of Stephen Colbert’s late-night show a noted critic of Trump has sparked concern that CBS may bend to political pressure under new ownership. CBS also agreed to an ombudsman role and promised “unbiased editorial direction,” further fueling speculation.
David Ellison himself has kept a relatively low political profile, but his father Larry Ellison is a known Trump ally and has shown interest in conservative media, including a reported bid for Bari Weiss’s outlet, The Free Press.
Meanwhile, Trump has continued his verbal attacks on CBS News personalities, recently targeting anchor Gayle King. Whether Ellison’s leadership defends journalistic independence or makes cuts under political or financial pressure remains to be seen but the newsroom will be under close watch.
5. Can Gaming Become a Growth Engine?
Skydance’s two video game studios give Paramount something rare among legacy media firms: a real gaming foothold. David Ellison sees gaming as a pillar of future growth, especially as the lines blur between interactive media and traditional storytelling.
Hollywood’s track record with video games is mixed. Disney and Warner Bros. Discovery have both tried to launch successful gaming divisions, with uneven results. Netflix is still figuring out its strategy after entering the space with modest success.
Paramount has valuable IP from “Star Trek” to “Top Gun” to “Mission: Impossible” that could be leveraged into gaming franchises. But doing it well will take time, money, and the right talent.
If Ellison cracks the code, gaming could become a lucrative way to expand franchise universes and reach younger audiences in immersive formats.
6. What’s the Ultimate Strategy Build or Sell?
Even with its Skydance partnership, Paramount Skydance is still considered too small to compete with the biggest media and tech conglomerates. Analysts widely expect more mergers to come, and Paramount could be either a buyer or a seller.
Speculation has swirled around a potential merger with Warner Bros. Discovery. Combining Paramount’s sports and reality content with WBD’s prestige HBO programming could be powerful. But combining CNN with CBS could trigger antitrust alarms and political controversy.
A union with Comcast’s NBCUniversal is another possible outcome, though it would require spinning off one of their news divisions to avoid monopolistic control of the airwaves.
But the most intriguing wild card may be TikTok. Oracle Larry Ellison’s company is both a cloud provider for TikTok and for Paramount. And Oracle is reportedly in talks to acquire TikTok’s U.S. operations amid regulatory pressure. If that deal were to happen, the Ellison family would effectively control both a massive social platform and one of the largest American content producers a potentially game-changing media empire.
The Real Stakes for Paramount's Future
The Paramount Skydance merger represents one of the most ambitious transformations in media history. At stake is the survival and reinvention of a century-old institution struggling to stay relevant in the digital era.
With $2 billion in planned cost cuts, new creative leadership, and a tech-first vision, David Ellison’s strategy may breathe new life into the storied brand. But he’ll have to manage political landmines, streaming headwinds, and legacy baggage while building something new.
The world will be watching and so will Hollywood.
