Paramount Skydance
On the 7th of August 2025, David Ellison officially formed Paramount Skydance Corporation. This new entity emerged from a three-way merger between Paramount Global, National Amusements, and Skydance Media. The company began trading under the ticker symbol PSKY on the Nasdaq exchange. Its headquarters moved to the historic Paramount Pictures lot in Hollywood, California. Multiple divisions relocated to One Astor Plaza in New York City, while major offices remained at the former Skydance Media site in Santa Monica. CBS operations stayed within Midtown Manhattan at their dedicated Broadcast Center. The formation marked the end of decades of corporate splits and reunions that had defined the entertainment landscape since 1912.
Regulatory approval for the merger faced significant hurdles due to Donald Trump's return to the presidency. A lawsuit involving CBS News alleging election interference complicated the FCC review process. Lawyers described the legal challenge as baseless, yet Paramount chose to pay $16 million to settle the dispute in July 2025. This payment ensured the Federal Communications Commission would not block the transaction. The settlement led to the cancellation of The Late Show with Stephen Colbert after he called the payment a bribe. Following the merger, David Ellison appointed Bari Weiss as editor-in-chief of CBS News. Trump publicly praised these decisions regarding the news division leadership changes.
David Ellison implemented immediate executive reshuffling upon taking control of the combined company. Andy Gordon joined as Chief Operating Officer and strategy officer on the 4th of August 2025. Jeff Shell served as president until his announcement about selling NAI cinemas on August 7. The company announced layoffs affecting approximately 1,000 employees on the 5th of August 2025. These cuts aimed to slash operating costs by $2 billion. A seven-year deal with TKO Group Holdings brought UFC content to Paramount+ starting in 2026. On September 4, management enforced a strict five-day-a-week return-to-office policy for all staff. Further reductions occurred in October when Dana Jacboson, Michelle Miller, and producer Brian Applegate were among those laid off from CBS Saturday Morning.
Paramount Skydance attempted a hostile takeover of Warner Bros. Discovery in late 2025. Early speculation valued the potential deal at over $70 billion before settling near $45 billion. The bid faced scrutiny from Senator Elizabeth Warren and other regulators concerned about market consolidation. Netflix ultimately won the bidding war by offering $72 billion for the streaming and studio assets. Paramount launched a counter-offer of $30 per share worth $108.4 billion in enterprise value. Despite this aggressive pricing, Warner Bros. Discovery shareholders rejected the Paramount proposal on the 17th of December 2025. The board cited insufficient value compared to the Netflix offer. By the 23rd of January 2026, Netflix Co-CEO Greg Peters dismissed the Paramount bid as relying heavily on debt and Larry Ellison's personal guarantee.
New distribution agreements reshaped the company's content strategy starting in September 2025. Paramount Pictures inked a deal with Microsoft-owned Activision Blizzard to develop a live-action Call of Duty film. This project represented a dream come true for CEO David Ellison, who identified as a long-time fan of the series. Matt and Ross Duffer signed a four-year agreement for movies and television projects following their departure from Netflix in April 2026. Will Smith and his Westbrook company secured a first-look multi-picture deal including films like Sugar Bandits. Legendary Entertainment entered a three-year worldwide distribution pact excluding China. The company also launched Paramount Sports Entertainment to produce scripted and unscripted programming alongside interactive games. These moves aimed to expand the library beyond traditional linear networks into streaming and gaming sectors.
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Common questions
When was Paramount Skydance Corporation officially formed?
David Ellison officially formed Paramount Skydance Corporation on the 7th of August 2025. This new entity emerged from a three-way merger between Paramount Global, National Amusements, and Skydance Media.
What happened to The Late Show with Stephen Colbert after the merger?
The settlement led to the cancellation of The Late Show with Stephen Colbert after he called the payment a bribe. Following the merger, David Ellison appointed Bari Weiss as editor-in-chief of CBS News.
How many employees were laid off by Paramount Skydance in August 2025?
The company announced layoffs affecting approximately 1,000 employees on the 5th of August 2025. These cuts aimed to slash operating costs by $2 billion.
Why did Warner Bros. Discovery shareholders reject the Paramount proposal?
Warner Bros. Discovery shareholders rejected the Paramount proposal on the 17th of December 2025 because they cited insufficient value compared to the Netflix offer. By the 23rd of January 2026, Netflix Co-CEO Greg Peters dismissed the Paramount bid as relying heavily on debt and Larry Ellison's personal guarantee.
Which film project did Paramount Pictures develop with Activision Blizzard?
Paramount Pictures inked a deal with Microsoft-owned Activision Blizzard to develop a live-action Call of Duty film. This project represented a dream come true for CEO David Ellison who identified as a long-time fan of the series.