Following David Ellison’s acquisition of Paramount, the company’s first earnings report since the merger sent shares soaring 10% on Tuesday
On Monday, Paramount issued a letter to shareholders announcing that merger-related cost savings are now expected to total $1 billion more than previously forecast, while outlining Ellison’s ambitions for the newly formed Paramount Skydance.
The letter defined these ambitions as the company’s “North Star priorities”: investing in growth businesses, expanding globally, and driving efficiency with a focus on “long-term free cash flow generation.” Paramount also projected total revenue of $30 billion for next year, supported in part by plans to raise Paramount+ subscription prices in the U.S. during the first quarter of 2026.
A major theme of the letter centered on efforts to “optimize the workforce for the future.” Ellison has made aggressive budget cuts a cornerstone of his leadership, including substantial workforce reductions, most recently with the elimination of 1,000 positions nationwide last month.
Less than a month after the merger, employees were notified that a five-day in-office workweek would become mandatory starting in January. Those unwilling to return were offered buyouts; according to the letter, about 600 employees chose to leave the company rather than return to full-time office work.
Ellison’s broader philosophy has been described as “cutting down to build up.” In pursuit of that vision, he has made three unsuccessful bids to acquire Warner Bros. Discovery.
When asked about these attempts on Monday, Ellison declined to elaborate, “I think it’s important to know there’s no must-haves for us,” he said. “We really look at this as buy versus build, and we absolutely have the ability to build to get to where we want to go.”
Anastasia Van Batenburg
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