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

Its new boss plans to rebuild the technology behind Paramount+.

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David Ellison, the new chief executive of Paramount, has big plans for the media giant and wants to turn it into a "media and technology" company, according to the Financial Times. Ellison is taking over as Paramount's boss after his production studio, Skydance Media, agreed to acquire the company behind massive films and franchises like The Godfather, Top Gun, Mission: Impossible and Star Trek. Skydance served as its financial partner in several projects that include Top Gun: Maverick. According to Reuters, Skydance is paying $2.4 billion to buy National Amusements, the firm that holds a controlling stake in Paramount.

As the Times notes, Paramount struggled financially after investing billions of dollars in its streaming service. Paramount+, however, has yet to turn a profit despite the company's efforts and even though it launched a plan with ads in order to get more people to sign up. Earlier this year, the media giant laid off 800 employees, including Paramount+ workers. But Ellison, son of Oracle founder Larry Ellison, intends to continue investing and working on the streaming service.

He's planning to rebuild Paramount+'s technology and use modern infrastructure to improve its recommendation algorithm that helps users find new shows. In addition, he's planning to work with his father's company to reduce costs and improve efficiency. Jeff Shell, who's going to become the combined company's president, told the Times that Paramount+ is going to team up with other streaming services and enter bundling agreements. The goal is to cut costs and to get customers to keep paying for access. Shell said they've already had calls from "different potential partners" and they're going to consider agreements that will get the service "more scale" and will get them to break even more quickly.

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