David Ellison, newly appointed CEO of Paramount and owner of Skydance, is steering the company toward a strong focus on direct-to-consumer markets. In a recent shareholder letter, he emphasized this priority alongside a strategic review of potential non-core asset sales, including Telefe in Argentina.
Paramount aims for $30 billion in revenue by 2026 and plans aggressive cost-cutting, with a target to reduce expenses by an additional $3 billion. Their third-quarter earnings showed sales of $6.7 billion, with a net loss of $257 million, though losses are improving post-Skydance acquisition. The report structure will shift to better reflect the new focus on DTC, television, and studio operations.
Subscriber growth for Paramount+ was noted, reaching 79.1 million, with plans to raise service prices in early 2026. Ellison announced over $1.5 billion will be invested next year in content, including UFC and scripted programs.
Addressing mergers and acquisitions, Ellison expressed caution, stating they aim to “build” capabilities instead of feeling pressured to acquire. His strategy also emphasizes enhancing technology to maintain competitiveness against Silicon Valley firms, while not undermining creative processes.
The company has begun layoffs, with plans to eliminate around 2,000 roles as part of a restructuring to align with new priorities. Ellison’s initiatives included hiring high-profile talent, though some projects have shifted to competing studios post-deals.
Former owner Shari Redstone expressed confidence in Ellison’s leadership, hoping to build on Paramount’s legacy for long-term growth.
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