David Ellison Unveils Bold Vision for New Paramount as Skydance Merger Closes
David Ellison officially stepped into the spotlight as chairman and CEO of the newly reimagined Paramount today, marking the completion of Skydance Media’s merger with Paramount Global. In a letter addressed to both Wall Street and the entertainment industry, Ellison outlined his high-level plans and priorities for the future of the legendary studio.
The new Paramount will operate under three core divisions: Studios, Direct-to-Consumer, and TV Media. Ellison’s strategy leans heavily into tech-driven transformation while doubling down on content and brand reinvention.
He emphasized that while AI technology will play a key role, it will never replace the creative core of the company.
“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.”
On the streaming front, Ellison made it clear that Paramount+ and Pluto TV will be a major focus. Starting next year, both platforms will run on a unified tech stack aimed at improving performance and reducing costs.
“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+.”
Ellison isn’t just thinking about tech. He also stressed the importance of premium, exclusive storytelling, especially as a growth engine for streaming.
“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.”
On the TV Media side, Ellison acknowledged the challenges of modernizing a legacy business.
“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.”
With the new ticker symbol PSKY, shares of the company began trading today, signaling a new chapter for the storied media giant. Ellison assured investors of a strategic, balanced financial approach.
“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.”
Ellison closed his letter with a commitment to transparency and integrity as the new leadership team takes the reins.
“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.
“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.”
This is a huge moment for Paramount and the entertainment world at large. We’ll be watching closely as Ellison and his team bring their vision to life.