Paramount and Skydance will merge to create new tech-media giant

Paramount’s new CEO David Ellison has big plans for the media giant and wants to transform it into a “media and technology” company. Financial Times. Ellison takes over as Paramount’s boss after agreeing to buy the company behind such huge films and franchises as production studio Skydance Media. The Godfather, Top Gun, Mission: Impossible and Star Trek. Skydance acted as a financial partner in several projects Top Gun: Maverick. according to ReutersSkydance is paying $2.4 billion to buy National Amusements, which owns a controlling stake in Paramount.

whom Times notes that Paramount has struggled financially after investing billions of dollars in the streaming service. However, Paramount+ has yet to turn a profit despite the company’s efforts schedule with ads to get more people to sign up. Earlier this year, the media giant He fired 800 workersIncluding Paramount+ staff. But Ellison, son of Oracle founder Larry Ellison, intends to continue investing in and operating the streaming service.

It plans to rebuild the Paramount+ technology and use the modern infrastructure to improve the recommendation algorithm that helps users find new shows. In addition, he plans to work with his father’s company to cut costs and improve efficiency. said Jeff Shell, who will become president of the combined company Times Paramount+ will integrate with other streaming services and enter into bundling deals. The goal is to keep costs down and keep customers paying for access. Shell said it had already received calls from “various potential partners” and would consider deals that would give the service “more scale” and help them break even faster.

The merger is expected to close next year, after which the new Paramount will be valued at $28 billion.

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