Honestly, the Paramount Skydance merger felt like a never-ending soap opera. One day the deal was dead, the next it was back on life support, and then suddenly, David Ellison is the king of Melrose Avenue. It wasn't just another corporate handshake. This was a messy, high-stakes fight for the soul of one of Hollywood’s last "Big Five" studios.
For months, the industry held its breath. Shari Redstone, the woman holding the keys to the kingdom through National Amusements, seemed to change her mind more often than a weather forecast. We saw CEOs get the boot, billion-dollar "all-cash" counter-offers from Sony and Apollo, and a last-minute dash by Edgar Bronfman Jr. that almost derailed the whole thing.
But as of August 7, 2025, it’s officially official.
The entity now known as Paramount Skydance Corporation (trading under the ticker PSKY) is a reality. If you’re wondering what this actually means for your Paramount+ subscription or the future of CBS, you aren’t alone. The dust is still settling, and the new leadership is already making moves that look nothing like the old Paramount.
Why the Deal Almost Collapsed (Twice)
The road to this merger was paved with drama. Back in June 2024, everyone thought the deal was done. Then, in a move that shocked Wall Street, Shari Redstone walked away. She wasn't happy with the valuation. She didn't like the legal protections. Basically, it wasn't enough money for her to let go of her family legacy.
But David Ellison—son of Oracle billionaire Larry Ellison—didn't give up.
He came back with a $8 billion plan that was too big to ignore. It was a two-step dance. First, Skydance and its backers (including RedBird Capital) bought out National Amusements for $2.4 billion. Then came the second part: merging Skydance into Paramount Global.
The Bidders Who Lost
It wasn't a one-horse race. Not even close.
- Apollo Global Management & Sony: They came in hot with a $26 billion all-cash offer. On paper, it looked better for the regular shareholders. But Redstone wasn't interested in seeing Paramount get chopped up and sold for parts.
- Edgar Bronfman Jr.: He made a late $6 billion run during the "go-shop" period. It actually caused a delay, but he eventually pulled out when it became clear the board was leaning toward Ellison.
New Leadership: Out With the Old
The "Office of the CEO" that filled in after Bob Bakish was ousted is gone. David Ellison is now the Chairman and CEO. He’s 42, a pilot, and the guy who helped produce Top Gun: Maverick. He’s bringing a "tech-first" mentality to a company that's been struggling to keep up with Netflix.
Joining him as President is Jeff Shell. You might remember him as the former NBCUniversal boss. He’s the "operations guy" meant to handle the day-to-day grind while Ellison focuses on the big-picture creative and tech stuff.
The restructuring is aggressive. The company is now split into three buckets: Studios, Direct-to-Consumer (streaming), and TV Media. They aren't wasting time, either. In late 2025, they announced plans to cut at least $3 billion in costs.
That’s corporate-speak for a lot of layoffs.
We’ve already seen over 2,000 jobs go, and Ellison signaled that another 1,600 are on the chopping block, mostly from the international side of things. It’s a brutal reality of the Paramount Skydance merger. To save the studio, they’re cutting deep into the muscle.
The Trump Connection and the FCC Hurdle
You won't find this in every headline, but the final approval for the merger got a bit political. To get the FCC to sign off in July 2025, Paramount had to clear some hurdles that looked a lot like concessions to the then-incoming Trump administration.
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The biggest one? Paramount paid $16 million to settle a lawsuit Donald Trump had filed against CBS News over a 60 Minutes interview. Stephen Colbert even called it a "big fat bribe" on air before his show was eventually not renewed.
Skydance also pledged to the FCC that they’d hire an "ombudsman" to watch for bias at CBS News and reportedly moved to scale back DEI programs. It’s a sharp pivot toward a "conservative-friendly" media approach that has a lot of people in the newsroom nervous. David Ellison even brought in Bari Weiss to help reshape the editorial direction.
Is Streaming Finally Going to Make Money?
The big problem for Paramount Global was that it was bleeding cash on Paramount+. While Netflix was printing money, Paramount was losing hundreds of millions every quarter.
Ellison’s plan is simple: Tech and Consolidation. He wants to rebuild the streaming platform from the ground up using better AI for recommendations. The goal is to keep you watching for two hours instead of twenty minutes. They’re also looking at "the desperation bundle"—basically teaming up with other struggling streamers like Max or Peacock to offer a joint package that people might actually pay for.
Surprisingly, they aren't slowing down on content spend. They’re planning to spend $1.5 billion on original shows and boost the movie output to 15 films a year. Oh, and they just signed a $7.7 billion deal with the UFC. They’re betting the farm that live sports and big-budget movies will save the ship.
What This Means for You (The Actionable Part)
If you're a fan of Yellowstone, Star Trek, or CBS Sports, things are changing behind the scenes, but the content isn't disappearing. In fact, it might get more "event-heavy."
Here is what to watch for in 2026:
- Price Hikes: Expect Paramount+ to get more expensive. They’ve already hinted at price increases in the US for early 2026 to help reach that $3 billion savings goal.
- The "PSKY" Pivot: If you hold stock, keep an eye on the transition. The focus has shifted from "growth at all costs" to "profitability through tech."
- Bundle Up: Don't be surprised if your Paramount+ login suddenly works for another service or gets bundled with your internet provider for "free."
- CBS News Shift: Expect a more centrist or "balanced" tone in news broadcasts as the new leadership implements the changes promised during the regulatory phase.
The Paramount Skydance merger isn't just a corporate footnote. It's the moment Hollywood decided that being a "movie studio" wasn't enough to survive. You have to be a tech company, a sportsbook, and a lean, mean streaming machine all at once. Whether Ellison can actually pull it off remains the $28 billion question.
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To stay ahead of these changes, check your current streaming subscriptions for upcoming "partner offers" or bundle deals that often roll out during these transition periods. If you are an investor, the quarterly earnings reports under the new "PSKY" symbol will be the first real indicators of whether Ellison's tech-heavy strategy is actually stopping the linear TV bleed.