Yahoo Finance Paramount's Head Honchos Sent A Long Letter After Losing Out On Skydance Merger: 'We Recognize That The Last Several Months Have Not Been Easy'
As Paramount continues to make its way through the 2024 movie schedule and beyond, the company’s future continues to be in flux. With the potential Skydance merger now fallen apart, things seem to have slid back into the competition for acquisition. As co-CEOs George Cheeks, Brian Robbins and Chris McCarthy addressed these uncertain times, that acknowledgement came in light of reported details pertaining to how the Paramount/Skydance merger fell apart.
How Paramount Global’s CEOs Addressed The Company's Future
Deadline obtained the organizational memo issued by Paramount’s Office of the CEO, which is composed of the aforementioned three executives. They touched upon the tumultuous waters that the legacy studio seems to have been sailing over the past couple of months, and part of that message is the following:
We recognize that the last several months have not been easy as we manage through ongoing change and speculation. And, we should all expect some of this to undoubtedly continue as the media industry and our business continue to evolve. As we look ahead, we are confident about what’s in store for Paramount. We believe in you and we believe in Paramount. We have the content, the people, and the right plan to ensure a strong future. And, we look forward to discussing our strategy in more detail at our Global Town Hall on June 25.
As for the big ticket strategy towards Paramount’s rejuvenation, it can be boiled down to three words: transforming, streamlining and optimizing. With streaming, “non-content costs,” and payment of studio debts respectively aligning with those priorities, it sounds like a strong plan that has profitability in the forefront. With that in mind, it’s a good time to discuss just why some feel the Paramount/Skydance merger failed to heed the words of Star Trek legend Jean-Luc Picard and make it so.
The Alleged Reasons Paramount/Skydance Merger Fell Apart
Reporting out of CNN, among other sources, has put the seemingly last minute halting of this potential business deal on the shoulders of Shari Redstone. The actual story of why she put an end to the Paramount/Skydance negotiations is unknown, with two different tales giving some very different messages.
With a failure to secure terms that would have pushed the deal through without a shareholder vote on one end, and an apparent case of just not wanting to move forward on the other, those prevailing theories are what linger in the air at the moment.
Taking the scuttlebutt and the issued statement above together, what I feel has happened is both a missed opportunity, but also a potential position for shoring up Paramount’s place on the market. As my colleague Mick Joest pointed out in his concerns over the Warner Bros/Paramount merger that was previously pondered, the future of franchises like Star Trek, Mission: Impossible, and even Top Gun seem to hang in the balance of whatever happens next.
For now, Paramount Global seems to be standing on its own two feet, ready to roll up its sleeves and get to work. As 2024’s release calendar has seen sneaky hits like IF teasing the potential box office success of A Quiet Place: Day One and Sonic the Hedgehog 3, the fortunes of this mountainous titan might be heading in the right direction.
Should that be the case, Paramount might not even have to entertain a merger in the near future. But if it does, I firmly agree with some of the other speculators out there that suggest these hits could only sweeten the pot further.
Merger or not, this still looks to be a crucial year this legendary powerhouse’s fate, and you can bet a lot of people will be watching to see what happens next. So if you’re a loyal Paramount+ subscription holder and you want to make sure that platform doesn’t go away any time soon, keep that in mind as you decide what to stream and where.
