Paramount CEO David Ellison is aggressively reshaping the company’s content portfolio as part of a fresh growth agenda following a major merger. Just weeks after finalizing Skydance Media’s $8 billion acquisition of Paramount Global in early August, Ellison, the 42-year-old son of tech billionaire Larry Ellison, quickly set a new pace securing high-profile content deals and refocusing the company’s strategy on premium, diverse programming and expanding its sports offerings.
Ellison’s swift moves reflect his vision for Paramount (Nasdaq: PSKY) as a broad entertainment powerhouse that merges Hollywood creativity with Silicon Valley technological innovation. One of his first actions was to win a competitive bidding war for a new heist film directed by James Mangold and starring Timothée Chalamet. But perhaps more significant was the groundbreaking seven-year, $7.7 billion deal to bring the Ultimate Fighting Championship (UFC) exclusively to Paramount’s streaming platform and select CBS broadcasts starting in 2026. This marks a significant departure from UFC’s traditional pay-per-view model, making fights more accessible to Paramount+ subscribers.
Earlier in the year, Ellison also inked a $1.5 billion global deal to retain “South Park” creators Trey Parker and Matt Stone, emphasizing his intent to invest heavily across different genres. He followed this with a film deal with Activision for a live-action adaptation of the popular Call of Duty video game, underlining a broad commitment to premium intellectual property and franchise development. This aggressive acquisition strategy aims to expand and diversify the company’s content library, drawing subscribers while boosting engagement and revenue.
This activity follows a lengthy and complex merger process between Skydance and Paramount which sought to create a media and entertainment company with both creative depth and technological backing. The merger included a complex financial structure: $2.4 billion cash paid to acquire controlling ownership from National Amusements, $4.5 billion paid to Class A and B shareholders, and a $1.5 billion capital injection to fuel investment in new content and technology. The combination of Skydance’s production expertise and Paramount’s vast library and distribution network was positioned as a platform for ambitious growth, particularly aiming to increase the output of large-scale productions and integrated streaming services.
Ellison’s approach is clear, premium storytelling and exclusive content are the primary drivers for subscriber growth and retention. He sees a particular value in sports content as a reliable source of audience engagement, which can reduce subscription churn and increase average revenue per user over time. The plan includes operating streaming services Paramount+ and Pluto TV on a single technology platform starting next year to improve performance, cost efficiency, and user experience. This consolidation aims to improve content recommendations and delivery while leveraging Pluto TV as a funnel to attract new subscribers to Paramount+.
The rapid changes have not come without challenges. The company is undergoing restructuring, including thousands of layoffs as it seeks to reduce costs and adapt to shifting industry dynamics, including losses in traditional cable advertising and a highly competitive streaming market. Wall Street analysts observe that while the scale of Ellison’s content spending is bold, it could weigh on the company’s stock in the short term, with meaningful financial returns expected only after several years of expanded production and integration. Even so, investors are eager for Ellison to provide more clarity on growth, costs, and profitability in upcoming earnings reports.
Ellison’s ambitions do not stop at content building. There are reports that Paramount Skydance is preparing a sizeable bid for Warner Bros. Discovery. Such a deal could potentially transform the media landscape by combining two of Hollywood’s most storied studios and significantly expanding Paramount’s content portfolio to include major franchises like DC, Harry Potter, and Game of Thrones, along with valuable sports rights including the National Hockey League and Major League Baseball. This move would further bolster Ellison’s vision of a comprehensive media and technology enterprise capable of competing with the dominant tech platforms in entertainment.
In his own words in an open letter to investors at the time of the merger’s closure, Ellison emphasized the responsibility of managing a company that shapes cultural narratives worldwide. His focus remains on meaningful investment in content and technology, recognizing that the future success of Paramount hinges on exceptional storytelling and innovation. There is a strong sense that Ellison is not simply managing a legacy studio, he is rebuilding and expanding it in ways that reflect both the changing habits of audiences and the competitive pressures of the modern media industry.
David Ellison’s first months leading Paramount have been marked by bold deals and a clear emphasis on creating a diverse, high-quality content pipeline centered on streaming and live sports. His efforts reflect a modern strategy for entertainment that embraces technology, broad audience appeal, and long-term growth while navigating the complex realities of today’s media ecosystem.
