Ellisons

Tech scion David Ellison and his leadership team at Paramount sent a message to Hollywood: A new era is underway.

Nearly a week after taking the keys to the battered media company, Ellison and his top executives met with reporters at the Paramount Pictures lot Wednesday to show that they mean business.

Ellison and his team will be based in Hollywood — not New York — and they plan to view the entertainment industry through a California lens by making big investments, leaning into technology and building on popular franchises, including “Top Gun,” “Star Trek” and “Yellowstone.”

Last week, Ellison’s Skydance Media and its backer RedBird Capital Partners closed their $8-billion takeover of the firm that includes CBS, Comedy Central, MTV Networks, Showtime and the Melrose Avenue movie studio.

“One of our biggest priorities is actually restoring Paramount as the No. 1 destination for the most talented artists and filmmakers in the world,” Ellison said. “Very simply, great filmmakers make great movies.”

Such a Paramount comeback would be long overdue.

The film studio has suffered from decades of under-investment, and was often bypassed by many of Hollywood’s biggest filmmakers. The studio plans to release eight films next year, but that’s too small an output to sustain a theatrical film business, Paramount executives said.

The plan is to nearly double the number of feature films to 15 and, and eventually, 20 movies a year.

Ellison, the 42-year-old chairman and chief executive, was eager to bury his days of being a political target, following the lengthy regulatory review of the deal and President Trump’s lawsuit against CBS for its edits of a “60 Minutes” interview with Kamala Harris last fall. Paramount settled the lawsuit last month, agreeing to pay $16 million.

Days later, CBS notified Stephen Colbert that it was ending his late-night talk show in May — prompting howls among some fans and raising speculation the show was sacrificed to appease Trump. CBS has said the decision was “purely” based on economics; the show has been losing money.

Programming will be created with broad audiences in mind, Ellison and his lieutenants said. Ellison said his goal is to move the company away from political divisions in an effort to reach a wider audience.

“One of the things I think is important is I don’t want to politicize this company,” Ellison said. “We’re an entertainment company first, and I genuinely believe if you’re breathing, you’re our audience. We want to be in the business of speaking to everybody.”

For Ellison, movies have been a lifelong interest. He recounted his days growing up when he, his mother and sister would go to the cinema or pick from their extensive home library of video cassette tapes.

He intends to “significantly scale” the amount of content the studio produces and has entrusted his longtime deputy Dana Goldberg and Josh Greenstein, a former Sony executive, as co-chairs of Paramount Pictures. The studio plans to concentrate on key intellectual property such as “Star Trek,” “World War Z” and “Transformers,” with Goldberg saying that “Star Trek” is a priority across the company.

Paramount executives are also interested in filmmaker-driven original films. Late last week, Paramount said it landed an original project called “High Side,” helmed by “A Complete Unknown” director James Mangold, which reunites him with actor Timothée Chalamet.

In addition, Paramount Pictures plans to greenlight family films, with classic movies like “The Goonies,” “Gremlins” and “Night at the Museum” as touchstones, Goldberg said. There’s also interest in R-rated comedies, horror and stories that appeal to Middle America.

Paramount has no plans to crank out low-cost films for its Paramount+ streaming platform, said Cindy Holland, the new head of streaming for Paramount.

“The movies that we make will be made for theatrical,” Ellison said, adding that there is cultural significance to making films for the big screen.

Ellison also praised actor Tom Cruise, whom he met when he founded his Skydance Media company in 2010. Skydance co-produced “Top Gun: Maverick” and recent “Mission: Impossible” installments. Goldberg recounted how she and Greenstein called Cruise after Paramount unveiled its new leadership structure.

“It was to thank him for, frankly, the huge piece he’s been in Paramount’s history, Paramount’s present and how important he is for Paramount’s future,” Goldberg said. “‘Top Gun 3’ is a massive priority for us.”

The new corporate ownership structure gives the family of Larry Ellison (David’s billionaire father) and RedBird the ability to build the company for the future, rather than manage for quarter-by-quarter earnings.

The Ellison family now owns 50% of the company, and RedBird holds 20% — a dominant position. Regular shareholders have 30% of the stock in the new company. Shares soared more than 36% on Wednesday to $15.

The event included Ellison’s co-investor, RedBird founder Gerry Cardinale, who stressed his confidence in Paramount’s prospects.

Cardinale noted that he dispatched two of his top executives to join the company — Andy Gordon, a former Goldman Sachs banker is now Paramount’s chief operating officer and chief strategy officer, and Jeff Shell, the former NBCUniversal executive who’s now Paramount‘s president — to signify the importance of rebuilding.

“I’m betting my firm and my career on this deal,” Cardinale said.

On Wednesday, longtime Paramount shareholder Mario Gabelli sued Redstone and Paramount, alleging the deal structure disadvantaged shareholders other than Redstone, who received a premium for her stock.

As part of the deal, the Redstone family was paid $2.4 billion for their National Amusements Inc. firm, which held the controlling shares. After their considerable debts are paid, the family should come away with $1.75 billion. Paramount’s B-class shareholders received $15 a share.

Skydance and RedBird have promised investors that it will find $2 billion in cost savings, which means further belt-tightening and layoffs. Shell said he didn’t want Paramount to become a company that had perpetual layoffs, saying the plan was to have one restructuring and “then be done with it.”

The executives also showed no interest in cleaving off the cable channels, unlike Comcast or Warner Bros. Discovery, which are preparing for spinoffs. Shell said the diminished status of the channels gives the company opportunities to rebuild those brands.

In their first week, Ellison and RedBird have made big bets. On Monday, the company said it would spend $7.7 billion over seven years to lock up U.S. streaming and television rights to UFC mixed-martial arts fights for the Paramount+ streaming service and CBS.

In addition, Paramount in July agreed to pay $1.25 billion over five years to the creators of Comedy Central’s “South Park.” A separate deal with Trey Parker and Matt Stone allows the cartoon to run exclusively on Paramount+.

When asked what Paramount assets were underappreciated, Ellison talked about the broad reach of CBS, which just ended the regular television season in first place in prime-time among broadcast networks for the 17th consecutive year. He also mentioned CBS’ relationship with the NFL, Masters golf tournament and NCAA March Madness.

Gordon added, “I actually think every asset is underappreciated here.”

David Ellison’s Skydance Media pledged to abandon all diversity, equity and inclusion programs at Paramount Global in an attempt to win government approval for its $8-billion merger.

Paramount already had scaled back diversity programs earlier this year. In a Tuesday letter to Federal Communications Commission Chair Brendan Carr, Skydance said it would go further to cancel diversity efforts.

“Paramount no longer will maintain an Office of Global Inclusion and will not have any teams or individual roles focused on DEI,” Stephanie Kyoko McKinnon, Skydance general counsel, wrote in the three-page letter to Carr. The appointee of President Trump, in one of his first moves as chair, dismantled the agency’s diversity programs and called on companies to do the same.

Kyoko McKinnon said Paramount will remove “references to DEI in its public messaging, including on its websites and social media,” along with culling DEI language in “internal messaging and training materials.”

Last week, Ellison met with Carr to press his case that Skydance and its backer RedBird Capital Partners would be strong stewards of Paramount, which includes CBS, Comedy Central, MTV, BET and the Melrose Avenue movie studio, Paramount Pictures. Skydance needs Carr’s approval for the merger and the transfer of the CBS television station licenses to the Ellison family.

Skydance separately tackled persistent complaints by conservatives about alleged news bias at “60 Minutes” and other programs.

Ellison’s firm pledged to “promote transparency and increased accountability” at CBS News. The company said it would install an ombudsman, reporting to the president of Paramount, “to receive and evaluate any complaints of bias or other concerns involving CBS” for at least two years.

Trump’s ire over edits of a “60 Minutes” Kamala Harris interview last fall nearly derailed Skydance’s takeover of Paramount. Carr opened an inquiry into alleged news distortion after Trump sued CBS in federal court in Texas.

Earlier this month, Paramount reached a $16-million settlement with Trump to resolve the dispute that caused deep divisions within Paramount and prompted high-level CBS departures. Trump boasted Tuesday on Truth Social that he anticipates receiving an additional $20 million worth of advertising and PSA time from the new owners.

During his July 15 meeting with Carr, Ellison underscored “Skydance’s commitment to unbiased journalism and its embrace of diverse viewpoints, principles that will ensure CBS’s editorial decision-making reflects the varied ideological perspectives of American viewers,” according to an FCC filing.

Skydance’s Kyoko McKinnon added: “We further reaffirm that, after consummation of the proposed transaction, New Paramount’s new management will ensure that the company’s array of news and entertainment programming embodies a diversity of viewpoints across the political and ideological spectrum, consistent with the varying perspectives of the viewing audience.”

Ellison recently met with prominent journalist Bari Weiss, reportedly to discuss Skydance acquiring her center-right online publication, the Free Press, as an alternative to traditional news sites. She started the outlet, which is often critical of DEI, after quitting her job as a New York Times opinion writer, citing intolerance of her and her more conservative viewpoints.

Also last week, late-night host Stephen Colbert learned his CBS talk show would be canceled in May. CBS has said Colbert’s cancellation, which will take place in May, was “strictly financial” and not related to the merger approval. Still, conservatives and liberals have widely questioned whether Colbert’s frequent criticisms of Trump played into the decision.

Skydance has said it didn’t have a role in the Colbert decision.

Skydance isn’t the only company under pressure to ditch diversity programs to win FCC approval for a deal.

Two months ago, telecommunications giant Verizon pledged to drop diversity efforts to gain Carr’s blessing for the company’s $20-billion takeover of Frontier Communications.

Carr separately launched probes into Walt Disney Co. and Comcast Corp.’s workplace diversity efforts.

After George Floyd’s 2020 murder in Minneapolis, Paramount and other Hollywood companies vowed to hire more people of color. Such moves were cheered by many, including those cognizant of Hollywood’s troubled history with diversity.

Paramount encouraged executives to make diverse hires and promotions, and progress toward the corporate goals was one of many factors considered when calculating bonuses. That program was dismantled last year.

For years, CBS struggled to shake its prime-time sitcom formula to build shows around white men, a la “King of Queens,” “Everybody Loves Raymond” and “Two and a Half Men.”

The network broke the pattern in 2018 with “The Neighborhood,” starring Cedric the Entertainer, and procedural drama “FBI,” starring Zeeko Zaki.

CBS also championed mentorship programs for writers and directors to build a more diverse pipeline of creators. That initiative dated to 2004.

FCC Chairman Brendan Carr has made a priority of abolishing DEI programs.

(Bloomberg via Getty Images)

Skydance promised not to set numerical goals related to race, ethnicity or gender of job applicants.

“The company is committed to ensuring that its storytelling reflects the many audiences and communities it serves in a manner that complies with non-discrimination requirements and other applicable laws,” Kyoko McKinnon wrote.

“I am very encouraged by today’s announcements,” said Daniel Suhr, president of the conservative Center for American Rights, which filed an FCC complaint about “60 Minutes” and suggested a CBS News ombudsman. “These are important steps towards better broadcasting that serves all consumers.”

President Trump has endorsed David Ellison’s takeover of Paramount Global — an $8-billion merger that has been complicated by his $20-billion lawsuit over CBS’ “60 Minutes.”

On Wednesday, Trump was asked about the hold-up in the federal review of Skydance’s takeover of the storied entertainment company. The question came as reporters clustered around the president on the White House lawn to watch the installation of a flagpole.

The Paramount-Skydance deal has been pending at the Federal Communications Commission since late last fall.

Trump said he hoped the deal goes through.

“Ellison is great. He’ll do a great job with it,” Trump said.

Then he appeared to connect the merger-review delay to his lawsuit against CBS and its parent Paramount over last fall’s “60 Minutes” interview with then-Vice President Kamala Harris.

Trump has maintained since last October that the Harris interview was edited to burnish her chances in the November election. CBS has denied the allegations, saying the edits were routine. The raw footage showed Harris was accurately quoted, but Trump’s team said he suffered “mental anguish” from the broadcast.

“They interviewed Kamala. Her answer was horrendous,” Trump said Wednesday. “I would say it was election-threatening. I would say election-threatening because it was so incompetent.”

1st Amendment experts have called Trump’s case frivolous, but Paramount wants to avoid waging an extensive legal fight. Paramount’s leaders have pursued a settlement to help clear a path for the company’s sale to Skydance — a deal that needs the approval of the FCC.

The mediation process to resolve the lawsuit, filed in a Texas court, has become protracted.

“They are working on a settlement,” Trump said Wednesday. He mentioned that two high-level CBS executives — the head of CBS News and the executive producer of “60 Minutes” — had abruptly departed as the merger review dragged on.

“They’re all getting fired,” he said.

Late last week, Trump’s legal team filed court documents asking for a deadline extension in the discovery process, disclosing the two sides were working to reach a resolution.

Earlier this month, Ellison met Trump briefly while the two men were sitting ringside at a UFC fight in New Jersey, according to video footage shared online. Skydance declined to discuss Ellison’s interaction with Trump.

It marked the second time this year that Ellison chatted with the president at a UFC match. The first was in April.

It’s been nearly a year since Paramount’s controlling shareholder Shari Redstone and fellow Paramount directors approved the two-phased $8-billion deal that will hand the company to the son of tech billionaire Larry Ellison, who is a Trump supporter. The deal will also see the Ellison family buy the Redstone investment vehicle, National Amusements Inc.

Santa Monica-based Skydance intends to consolidate the company that boasts the Melrose Avenue Paramount film studio, Paramount+ streaming service, CBS and cable channels including Comedy Central, Showtime and BET.

Skydance operations and personnel will be folded into Paramount.

The deal faces one final regulatory hurdle: FCC Chairman Brendan Carr’s consent to transfer 29 CBS television station licenses to the Ellisons from the Redstones. This week, the Senate approved Trump’s second Republican appointment to the panel, Olivia Trusty.