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Los Angeles Times
2 days ago
- Business
- Los Angeles Times
David Ellison is coming to Paramount with Silicon Valley cash. Can he save a classic studio?
As a deep-pocketed producer, David Ellison helped breathe new life into Paramount franchises including 'Mission: Impossible,' 'Star Trek' and 'Top Gun.' But can the high-flying son of a billionaire make a full-fledged media company airworthy again? Can he use Silicon Valley money and movie business know-how to restore the legacy of one of the entertainment industry's original studios, following a deal clinched through an act of political appeasement? Those are the questions Hollywood talent, studio rivals and insiders will be asking as Ellison takes the controls of the new Paramount, after regulators finally approved the long-awaited $8-billion merger with his Santa Monica production company Skydance Media. The deal — two years in the making, and approved by the FCC only after a $16-million settlement with Trump and promises to mindwipe any trace of DEI from the company — is expected to close Aug. 7. After that, Ellison, backed in large part by his father, Oracle Corp. co-founder Larry Ellison, will bring in his own team to face the daunting challenges. Chris McCarthy, the architect of Paramount's recent streaming strategy, is out. Paramount Pictures and Nickelodeon head Brian Robbins is also expected to exit while CBS chief George Cheeks is staying. The incoming management team includes former NBCUniversal Chief Executive Jeff Shell, who is currently a heavyweight at Ellison's bidding partner RedBird Capital. Skydance Chief Creative Officer Dana Goldberg will run the film studio, and former Netflix executive Cindy Holland will play a major role at the new company. Also joining is Sony Pictures movie executive Josh Greenstein. This may be a different team from the one that labored under outgoing controlling shareholder Shari Redstone, but it'll be contending with most of the same problems. Paramount is dogged by issues buffeting all legacy media companies, including the decline of traditional TV ratings, the post-COVID-19 realignment of the theatrical box office and the escalating costs of sports rights, as my colleague Stephen Battaglio and I reported last week. Those difficulties were exacerbated at Paramount by chronic underinvestment and years of shambolic leadership, as corporate governance experts have long pointed out. Ellison has direct experience with movies, having produced many of them, including some of Paramount's biggest hits (as well as some notable flops). He's less steeped in running TV channels and streaming services, which have urgent needs. The scion is also coming in to make good on a promise to investors: to find $2 billion in cost cutting, which will mean layoffs and disruption. Paramount+ has been growing, thanks in part to the NFL, CBS shows and a run of original hits including 'Landman,' '1923' and 'Tulsa King.' But the service has lost money for years, and the app is clunky. (It's expected to reach full-year U.S. profitability in 2025.) McCarthy spent big bucks on talent, including Taylor Sheridan and the creators of 'South Park,' enough to make Matt Stone and Trey Parker billionaires, according to Forbes. Analysts say the service will need substantial investment in content and technology to make it competitive while also partnering with other companies to increase its reach through discounted bundles and other initiatives. The new owners will have to decide what to do with the cable channel business, which includes such eroding brands as MTV, BET and Comedy Central. Many observers tend to assume Ellison will eventually spin those off, following the lead of NBCUniversal and Warner Bros. Discovery. In a sadly comical reminder of what can happen with a merger gone wrong, David Zaslav's Warner Bros. Discovery on Monday announced that the two companies resulting from its pending breakup will be called — wait for it — Warner Bros. and Discovery Global. TD Cowen analyst Doug Cruetz, in a recent note to clients, speculated that Ellison didn't buy the Paramount assets just to 'break it up for parts.' We'll see. Another looming and potentially costly issue is the NFL's relationship with CBS Sports. The change of control will trigger an early renegotiation of Paramount's contract with the league once the transaction closes. That's important because the NFL has significant leverage in dealmaking, considering that its games account for the vast majority of most-watched programming on television. Ellison has promised to bring technological enhancements to Paramount. That would mean a more functional app for Paramount+ and an improved personalized recommendation system. It might mean using tech to make movies cheaper and faster. A year ago, Ellison noted a partnership between Skydance Animation and Oracle to build a so-called studio in the cloud. What technology can't do is pick the movies people want to see, and that's where the new leadership group will have to prove themselves. But the biggest hurdle will be overcoming the stain covering the deal itself after the concessions required to get it over the finish line. Paramount paid a substantial sum to make peace with President Trump, who had sued the company over CBS News' '60 Minutes' interview with his 2024 election rival, then-Vice President Kamala Harris. The case was frivolous, 1st Amendment experts said. But the Redstone family and the Ellisons were desperate to get the deal done. As a result, the new company is starting off on a crooked foundation, as one Hollywood insider put it to me. Stephen Colbert, speaking on 'The Late Show,' called Paramount's settlement a 'big fat bribe.' Days later, he learned that his show would be ending in May. Even assuming the company told the truth in saying that the cancellation was a purely financial decision (i.e., the show was too expensive and it was losing money), the optics were bad. Comedians responded the way comedians do. The 'South Park' team, having secured a $1.5 billion deal to bring the long-running animated series to Paramount+, opened their 27th season with, effectively, a pair of middle fingers raised to Trump and their parent company. The show depicted a flapping-headed cartoon Trump in bed with Satan, similar to its past portrayal of Saddam Hussein, and ended with an AI-generated PSA showing the president wandering the desert and stripping naked, revealing tiny, talking genitalia. The Trump settlement cast a pall over whatever plans Ellison has. CBS News lost key figures in part due to Paramount's push to reach a peace accord with the president (Tanya Simon being named to run '60 Minutes' is seen as a relief). But whatever you say about the corporate behind-the-scenes machinations that took place to make the deal happen, you can't say the artists have lost their spine. In a return to form for Walt Disney Co.'s Marvel Studios, 'The Fantastic Four: First Steps' opened with a robust $118 million in the U.S. and Canada and $218 million globally, according to studio estimates, slightly outperforming prerelease projections. This comes after middling results and poor reviews for 'Captain America: Brave New World' and tepid sales (but better reviews) for 'Thunderbolts*.' Last summer's 'Deadpool & Wolverine' was a $1.34-billion hit. Like Deadpool and Wolverine, the Fantastic Four — known as Marvel's first family — came to Disney through the company's acquisition of 21st Century Fox entertainment assets. Fox made three 'Fantastic Four' movies, all bad. 'First Steps' earned mostly positive reviews from critics and fans (88% on Rotten Tomatoes; 'A-' from CinemaScore). The $218-million global opening weekend was similar to that of James Gunn's DC reboot 'Superman,' released earlier this month. That film just crossed the $500 million box office milestone, with a strong $289 million domestically and a less-impressive $213 million overseas. Theaters have been on a winning streak this summer. So far this year, ticket sales are up 12% from 2024, according to Comscore. But the rest of the season looks thin. Next weekend features Paramount's 'The Naked Gun,' Universal's animated 'Bad Guys 2' and Neon's Sundance horror breakout 'Together,' starring real-life couple Dave Franco and Alison Brie. One marker of a great artist is the number and diversity of musicians who take inspiration from their work. And Ozzy Osbourne, the Black Sabbath frontman who died last week, had plenty of admirers who covered his songs. The Times' Mikael Wood already rounded up the Prince of Darkness' 10 essential tracks. Here are some of the best covers, with help from Rolling Stone and Loudwire.
New York Post
3 days ago
- Business
- New York Post
Former CBS anchor warns Paramount merger marks ‘the end' of the network and ‘honest' journalism
Former CBS anchor Connie Chung warned on CNN Friday that the recent merger between Paramount Global and Skydance Media could be the 'end' of journalism as she once knew it. The FCC announced it approved an $8 billion merger between the two companies on Thursday with the deal set to close on August 7. This came after several controversies involving CBS, which Paramount owns, such as a lawsuit settlement with President Donald Trump over a '60 Minutes' segment and canceling 'The Late Show with Stephen Colbert.' Advertisement Based on the newly formed company Paramount Skydance Corp., the former 'CBS Evening News' anchor suggested the network she was a part of could lose all of its independence. 'I fear the end of CBS as I knew it,' Chung said on 'CNN News Central.' 'CBS was always a standalone network. It was autonomous. The news division was autonomous, and it was always unencumbered by pressures from politicians, including presidents, and unencumbered by bean counters. But now? I can see very clearly that the days that I remembered are long gone.' 3 The FCC announced it approved an $8 billion merger between the two companies on Thursday with the deal set to close on August 7. CBS via Getty Images She continued, 'Honest, unbiased, fact-based journalism is being tainted and those who practiced that journalism, like Edward R. Murrow and Walter Cronkite, that kind of journalism has disappeared. I also fear that gone are the days of Frank Stanton, who was the president of CBS, who defended the rights of the journalism, the First Amendment, the fourth estate before Congress, and he represented all journalists in many ways.' Advertisement Chung placed more blame on Paramount's controlling shareholder Shari Redstone and Skydance Media CEO David Ellison for having 'tainted journalism' with their 'greed.' She also called out company's pledge to not implement any new DEI initiatives as an insult to her and other women and minorities at CBS. 3 Chung called out the company's pledge to not implement any new DEI initiatives as an insult to her and other women. Christopher Sadowski Several journalists have accused CBS and Paramount of acquiescing to Trump ahead of the merger through its settlement and cancellations, including Chung. 'I have difficulty believing what they claim, which is that the '60 Minutes' agreement had nothing to do with the merger, or a settlement had nothing to do with the merger, and also that the disappearance of Steve [sic] Colbert had nothing to do — it had only to do with financial issues. It all smells,' Chung said. Advertisement Paramount has been facing an intense backlash for its recent decisions, even from some of its own employees. 3 Several journalists have accused CBS and Paramount of acquiescing to Trump ahead of the merger through its settlement and cancellations. Getty Images Veteran '60 Minutes' producer Rome Hartman told Fox News Digital earlier this month that he thought the company's settlement with Trump was a 'cowardly capitulation by the corporate leaders of Paramount' and a 'fundamental betrayal' of CBS News. Advertisement Senators Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass. and Ron Wyden, D-Ore., also sent a letter to Ellison demanding answers about the Trump settlement and the Colbert cancellation, suggesting anti-bribery laws may have been broken in order for the merger to proceed with FCC approval. Fox News' Joseph Wulfsohn and Brian Flood contributed to this report.
ABC News
3 days ago
- Entertainment
- ABC News
Why Stephen Colbert's talk show was cancelled, and what it has to do with Trump
Late night TV legend Stephen Colbert is being taken off air, and suspicions are swirling. His US network CBS says it cancelled the talk show for financial reasons, but could President Donald Trump have something to do with it? We unpack the merger between Paramount Global and Skydance Media, the settlement between CBS's 60 Minutes and Trump, and the state of political satire in the US. Guest: Mawunyo Gbogbo, ABC pop culture journalist. -------- Read Mawunyo's article about the CBS decision here. If you liked this chat, you might enjoy our previous episodes on how long Donald Trump can keep breaking the law or why art is being covered up in Australia. And feel free to share your thoughts to
Fox News
3 days ago
- Business
- Fox News
Former CBS anchor warns Paramount merger marks 'the end' of the network and 'honest' journalism
Former CBS anchor Connie Chung warned on CNN Friday that the recent merger between Paramount Global and Skydance Media could be the "end" of journalism as she once knew it. The FCC announced it approved an $8 billion merger between the two companies on Thursday with the deal set to close on August 7. This came after several controversies involving CBS, which Paramount owns, such as a lawsuit settlement with President Donald Trump over a "60 Minutes" segment and canceling "The Late Show with Stephen Colbert." Based on the newly formed company Paramount Skydance Corp., the former "CBS Evening News" anchor suggested the network she was a part of could lose all of its independence. "I fear the end of CBS as I knew it," Chung said on "CNN News Central." "CBS was always a standalone network. It was autonomous. The news division was autonomous, and it was always unencumbered by pressures from politicians, including presidents, and unencumbered by bean counters. But now? I can see very clearly that the days that I remembered are long gone." She continued, "Honest, unbiased, fact-based journalism is being tainted and those who practiced that journalism, like Edward R. Murrow and Walter Cronkite, that kind of journalism has disappeared. I also fear that gone are the days of Frank Stanton, who was the president of CBS, who defended the rights of the journalism, the First Amendment, the fourth estate before Congress, and he represented all journalists in many ways." Chung placed more blame on Paramount's controlling shareholder Shari Redstone and Skydance Media CEO David Ellison for having "tainted journalism" with their "greed." She also called out company's pledge to not implement any new DEI initiatives as an insult to her and other women and minorities at CBS. Several journalists have accused CBS and Paramount of acquiescing to Trump ahead of the merger through its settlement and cancellations, including Chung. "I have difficulty believing what they claim, which is that the '60 Minutes' agreement had nothing to do with the merger, or a settlement had nothing to do with the merger, and also that the disappearance of Steve [sic] Colbert had nothing to do — it had only to do with financial issues. It all smells," Chung said. Paramount has been facing an intense backlash for its recent decisions, even from some of its own employees. Veteran "60 Minutes" producer Rome Hartman told Fox News Digital earlier this month that he thought the company's settlement with Trump was a "cowardly capitulation by the corporate leaders of Paramount" and a "fundamental betrayal" of CBS News. Senators Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass. and Ron Wyden, D-Ore., also sent a letter to Ellison demanding answers about the Trump settlement and the Colbert cancellation, suggesting anti-bribery laws may have been broken in order for the merger to proceed with FCC approval.
Yahoo
4 days ago
- Business
- Yahoo
Incoming CBS owner promises Trump's FCC it will review ‘complaints of bias' at news network and eliminate DEI policies
Skydance Media, the production company that will soon take over Paramount, told the Trump administration this week that it would eliminate diversity, equity and inclusion (DEI) policies and hire an ombudsman to review 'complaints of bias' at CBS News once its $8.4 billion merger is complete. In a pair of letters to FCC Chairman Brendan Carr this week, Skydance's general counsel Kyoko McKinnon noted that while Skydance 'does not have DEI programs in place today,' the company confirmed that the New Paramount would not establish any similar practices in the future. Following President Donald Trump's executive orders earlier this year calling for the eradication of diversity and equity policies, Carr launched investigations into media conglomerates Disney – which owns ABC News – and Comcast, the parent company of NBC News, over their DEI hiring and editorial initiatives. Trump's hand-picked FCC chief, meanwhile, has also said that his agency would block any media mergers and acquisitions if the companies involved had diversity policies in place. 'Any businesses that are looking for FCC approval, I would encourage them to get busy ending any sort of their invidious forms of DEI discrimination,' he told Bloomberg in March. 'If there's businesses out there that are still promoting invidious forms of DEI discrimination, I really don't see a path forward where the FCC could reach the conclusion that approving the transaction is going to be in the public interest.' McKinnon additionally told Carr that Skydance would hire an ombudsman for at least two years, noting that the person would report directly to the president of the New Paramount and 'receive and evaluate any complaints of bias or other concerns involving CBS.' The letter added that the company's executive leadership would 'carefully consider any such complaints in overseeing CBS's news programming.' This pledge comes weeks after Paramount settled a lawsuit brought by Trump alleging 'election interference' due to the editing of a 60 Minutes interview with 2024 Democratic presidential nominee Kamala Harris. Even though the network denied the president's claims of 'deceptive' editing and called the lawsuit 'meritless,' Paramount paid Trump $16 million amid the pending merger, sparking accusations of bribery from Democratic lawmakers, free press organizations and CBS employees. '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,' McKinnon also noted, echoing similar promises Skydance CEO David Ellison made to Carr in a meeting this month. Ellison, the son of billionaire and Trump ally Larry Ellison, urged Carr to approve the merger and 'promptly grant' Paramount's request to transfer control of its broadcast licenses to Skydance. He further vowed that CBS would be 'unbiased' under the new corporate leadership. 'Relatedly, we discussed 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,' Ellison's lawyer wrote in a regulatory filing. The meeting between Ellison and Carr took place days before Paramount and CBS announced that they had canceled outspoken Trump critic Stephen Colbert's late-night show, leading to further speculation that the demise of The Late Show was not a 'purely financial decision' and may have been politically motivated. Paramount has insisted that the cancellation was due solely to the dwindling ad revenues for late-night television and the high production costs of Colbert's show, though many CBS staffers feel it is actually 'part and parcel of the Trump shakedown settlement.' Regardless of whether Colbert's cancellation was a move to appease Trump or not, both the president and Carr have gloated over the decision. 'I absolutely love that Colbert got fired,' Trump declared on Friday. 'His talent was even less than his ratings.' Carr, meanwhile, tweeted on Tuesday that the 'partisan left's ritualist wailing and gnashing of teeth over Colbert is quite revealing,' adding that 'they're acting like they're losing a loyal DNC spokesperson.' Later on in the day, the president repeated his claim that he had struck a secret side deal with Skydance to give him up to $20 million more in pro-Trump advertising and PSAs as part of the 60 Minutes settlement. A group of liberal senators is investigating whether Ellison made any such promises to Trump. Paramount has denied knowledge of that backdoor arrangement, asserting that its payoff to Trump "does not include PSAs or anything related to PSAs.' Solve the daily Crossword
