David Ellison Drives Rapid Strategic Shift at Paramount Skydance
David Ellison, who took the helm as CEO and chairman of the newly merged Paramount Skydance in early August 2025, has quickly implemented a series of transformative initiatives aimed at reshaping the company’s content strategy and market position.
Within weeks of the merger closure, Ellison announced a landmark seven-year, $7.7 billion agreement to make Paramount the exclusive U.S. streaming home for UFC, starting in 2026. This deal marks a significant pivot from UFC’s traditional pay-per-view model, making its 43 annual live events available to Paramount+ subscribers and select CBS broadcasts. The scale of the UFC agreement approaches the $8 billion Paramount-Skydance merger itself.
Expanding Content and Creative Partnerships
Beyond sports, Ellison has secured rights to develop a live-action feature film based on Activision’s Call of Duty video game franchise, a series that has dominated U.S. sales for 16 consecutive years with over 500 million copies sold globally. Ellison, a self-described lifelong fan, emphasized the intent to deliver a cinematic experience faithful to the brand’s legacy.
Paramount also announced that acclaimed creators Matt and Ross Duffer, known for Netflix’s Stranger Things, will join the company under an exclusive four-year deal beginning mid-2026. Their producing partner, Hilary Leavitt, will collaborate across Paramount’s film, television, and streaming divisions.
Potential Acquisition of Warner Bros. Discovery
Industry reports indicate that Paramount Skydance is exploring a bid for Warner Bros. Discovery, a move that could drastically expand its content portfolio to include major franchises such as DC superheroes, Harry Potter, and Game of Thrones, along with significant sports rights like the NHL, MLB, and NASCAR. Such an acquisition would require substantial investment and integration efforts but could redefine the competitive landscape.
Operational and Financial Adjustments Amid Industry Challenges
Bank of America analyst Jessica Ehrlich noted that Paramount has been historically underinvested and anticipates a multi-year ramp-up in content production. The company plans to double its release slate, though initial financial results may be pressured by these investments.
Paramount is also undertaking cost-cutting measures targeting $2 billion in savings amid advertising revenue declines and the evolving media ecosystem. Reports suggest layoffs of 2,000 to 3,000 employees by early November 2025. Additionally, a new policy requiring employees to return to office full-time in 2026 has been instituted, with buyouts offered to those opting out.
Looking Ahead
Paramount’s upcoming Q3 earnings report in November will be closely watched for further details on Ellison’s strategic vision, including cost management and integration progress. Industry analysts highlight Ellison’s long-term focus as a departure from prior management approaches, emphasizing sustained investment in high-quality content and technology to reshape the company’s future.
FinOracleAI — Market View
David Ellison’s aggressive content acquisitions and strategic positioning, including the UFC rights deal and potential Warner Bros. Discovery bid, signal a bold growth trajectory for Paramount Skydance. While these moves enhance the company’s competitive content offerings, the substantial financial commitments and integration risks introduce near-term earnings pressure and operational challenges. Investors should monitor the impact of cost-cutting initiatives and the company’s ability to monetize new assets effectively.
Impact: positive
