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Ellison plans to reorganize Paramount into three business

units

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To integrate technology to amplify creativity, not replace

it

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Ellison acknowledges CBS News journalists

By Dawn Chmielewski

LOS ANGELES, Aug 7 (Reuters) - Paramount's new chairman

and chief executive, David Ellison, outlined a plan to transform

the century-old entertainment company into a technology-driven

media enterprise in an open letter marking the completion of the

merger with Skydance Media.

Ellison said the company would work to transform Paramount

by investing in growth businesses that are anchored in its

storytelling, working to scale its streaming business globally,

and reorganizing the company to make it more efficient.

"We are in the midst of a generational change in our

industry - and we understand Paramount has faced its own

significant challenges, compounded by the reality of a merger

process that stretched out over a considerable time period,"

Ellison wrote.

"But that time of uncertainty is now behind us. Moving

forward, we will work with conviction and optimism to transform

Paramount into a tech-forward company that blends the creative

heart of Hollywood with the innovative spirit of Silicon

Valley."

Paramount Global ( PARAA ) and Skydance Media Thursday completed their

$8.4 billion merger that was announced more than a year ago,

capping a long drawn-out deal process marked by political

scrutiny and shareholder concerns.

Ellison said he plans to reorganize Paramount into three

business units - studios, direct-to-consumer and TV media - to

speed decision-making. He plans to move the company onto a

single technology platform to reduce costs, and said the company

would find efficiencies associated with labor, real estate and

procurement, with the goal of achieving a previously announced

$2 billion in cost savings.

New Paramount will direct resources "to what matters most,"

Ellison wrote, delivering more movies, television series,

sports, news and games to global audiences.

Paramount will harness technology, not as a replacement for

human creativity, but as a tool to amplify creativity.

"From virtual production stages that unleash filmmakers'

limitless imaginations, to AI-assisted localization that brings

shows to new language markets overnight, to a proprietary

ad-tech stack that maximizes yield across streaming and linear

platforms, we will thoughtfully integrate these tools into every

aspect of our work," Ellison wrote.

Ellison said the company would prioritize growing its

streaming business, increasing investment in high-quality

exclusive content, which he called the "single biggest driver of

subscriber growth."

Sports is a key component of the streaming strategy, as a

tool to retain subscribers and keep them watching.

The company plans to move its subscription streaming

service, Paramount+, and its free ad-supported PlutoTV service

onto the same technology, to help save money and improve the

consumer experience.

Ellison laid out the company's core commitments, including

to its embattled CBS News division. He acknowledged the

journalists' "unwavering commitment" to the news business, and

added: "We take immense pride in CBS News' legacy of impactful

journalism and look forward to continuing to foster a newsroom

culture where journalists are empowered, trusted, and equipped

to do their best work."

In its effort to gain regulatory approval of the merger,

Skydance told the Federal Communications Commission that it

would appoint an ombudsman to evaluate complaints of editorial

bias or other concerns about CBS. It also offered assurances

that they were committed to unbiased journalism.

Democrat Anna Gomez, the FCC's dissenter, accused Paramount

of "cowardly capitulation" to the Trump administration. She also

said the FCC was imposing "never-before-seen controls over

newsroom decisions."

(Editing by David Holmes)