Hollywood shake-up: Inside the turbulent aftermath of the Paramount‐Skydance merger
Paramount‐Skydance
You don’t have to stroll through the halls of Paramount Skydance in costume to feel a little spooked this week. Beneath the surface of what appeared to be a blockbuster merger lies a sea of turmoil—unsettling headlines, bold moves and worrying signals of struggle.
Just a few months ago, newly‐installed CEO and Chairman David Ellison was greeted as a content-industry saviour. Fresh off the August closing of the merger between Paramount Global and Skydance Media, he embarked on a spending spree: securing mega-deals for streaming rights (including a multibillion-dollar pact for the UFC), renewing major shows, and stealing creative talent from competitors. (Spending money always wins favour in Hollywood.)
But the celebration didn’t last long. The first blow came when hitmaker Taylor Sheridan walked out the door to join NBCUniversal, despite Ellison calling him “a singular genius with a perfect track record.” The optics were terrible and the question was inevitable: did Ellison mis‐manage his first high-profile showrunner relationship or was he simply playing the cost/benefit game?
At the same time, Paramount Skydance set its sights even higher—on acquiring Warner Bros. Discovery (WBD). Reports say Ellison tabled offers between US $19 and $23.50 per share for WBD, but the board declined. Regulators and market watchers have flagged the complexity of combining two of the entertainment industry’s behemoths.
Then came the mass layoffs. In a memo to staff, Ellison confirmed that the company was initiating cuts of roughly 1,000 employees, with another 1,000 expected soon—representing about 10 % of the workforce. The restructuring is part of a pledged US $2 billion in cost savings following the merger.
Within this broader shake‐up, the news division at CBS saw its share of exits. Newly appointed editor‐in‐chief Bari Weiss took over with a mission to refresh the network, yet eight on-air roles reportedly exited—and half of them were women of colour. The departure of veteran anchor John Dickerson added fuel to the narrative of turmoil.
What do all these pieces add up to? A studio in fast forward mode: heavy spending, high ambition, but also high risk, aggressive efficiency moves and a looming question mark over culture, morale and future momentum. With Ellison slated to address the company’s Q3 earnings on November 10, many observers suspect the sweeping changes are part of a broader reset—“clearing the decks” for the next phase.
In the end, this story is far from over. The merger created one of Hollywood’s largest entertainment entities—but the signals now point to a battle for identity, stability and strategic direction. The costumes may be optional this week at Paramount Skydance—but the drama certainly is not.
FAQ
Q: Why is Paramount undergoing so many abrupt changes?
A: The changes follow the August 2025 merger of Paramount Global and Skydance Media, forming Paramount Skydance. CEO David Ellison has signalled a major restructuring to streamline operations, cut costs and pivot the company toward streaming and tech.
Q: How many jobs are being cut, and why?
A: About 2,000 positions are expected to be eliminated—roughly 10 % of the workforce. The first round, about 1,000 jobs, has already been announced. The cuts are part of broader cost-savings initiatives as the company aligns with its new strategic priorities.
Q: What happened with Taylor Sheridan?
A: Taylor Sheridan, whose work brought major hits to Paramount+, departed for NBCUniversal. Sources say Paramount never counter-offered enough to retain him. His exit highlights challenges in retaining top content creators under the new regime.
Q: What’s the deal with the Warner Bros. Discovery acquisition rumours?
A: Paramount Skydance reportedly pursued acquisition talks with Warner Bros. Discovery, but the WBD board rejected offers. The failed bid underscores the company’s aggressive growth ambitions—and regulatory/financial constraints.
Q: How is the CBS News leadership shake-up connected?
A: As part of the broader restructuring, Paramount Skydance acquired the news website The Free Press and installed Bari Weiss as CBS News editor-in-chief. Several high-profile hosts and correspondents have left—raising concern over direction, diversity and morale.
