Paramount Cancels Entire TV Studios Division
Paramount has decided to shutter its TV division, Paramount Television Studios. The studio was first opened 11 years ago by Paramount Pictures to create shows based on its film IP, but now the studio will be gone for good by the end of the week. Paramount Global made the move ahead of its merger with Skydance Media in an effort to cut around $500 million in costs.
Paramount Is “Streamlining”
Paramount Global already had two major layoffs this year, with Paramount TV being the main target for the layoffs. Most of the staff was already laid off in February, and now the studio is officially done as well. CBS President and CEO George Cheeks said the decision was based on the changes in the TV and streaming industry and the “need to streamline our company” rather than the studio’s performance metrics.
The Studio Focused On Streaming Shows
While Paramount TV is closing, its shows and projects won’t be axed as they will make the move to CBS Studios instead. The studio’s claims to fame include shows like Jack Ryan, Station Eleven, The Offer, 13 Reasons Why, and Time Bandits. Almost all of these shows were collaborations with other streaming services like Netflix, Apple TV+, and Amazon Prime Video, and now that Paramount has its own streaming service, it seems likely the company will direct more of its attention there.
Cost-Cutting Measures
Last week, Paramount Global announced that it would be laying off 15 percent of its US workforce over the coming months, so this Paramount TV closure likely won’t be the last major shakeup the company has before the Skydance merger goes through.
The merger is shaking up the entertainment industry in general, as this is one of the biggest entertainment mergers since the Warner Bros Discovery merger, which also saw a lot of cost-cutting and controversial decisions made amidst growing pains. The merger will see the Skydance production company acquiring Shari Redstone’s controlling stake in National Amusements, giving Skydance control of Paramount and its subsidiaries.
Skydance Is In Control
Skydance would assume control of Paramount Pictures, Paramount+, CBS, Nickelodeon, MTV, Comedy Central, and more, though it looks like Paramount TV is no longer part of the package.
The merger is still pending as it has to go through regulatory red tape, but Skydance will place its founder and CEO, David Ellison, at the head of the newly merged company while NBCUniversal CEO Jeff Shell serves as the company’s President. Of course, this also gives Skydance access to all of Paramount’s IPs like Star Trek, Mission: Impossible, Transformers, and many more.
More Layoffs And Shakeups Expected
The Paramount buyout and merger came at a critical juncture in the company’s history, as its linear TV business was declining, its streaming service was still fairly new in the market, and its credit rating was dubbed BB+ (junk status) by S&P Global.
It seems like the deal was mostly made to get an injection of fresh blood to lead the company and take it in a new direction. Hopefully, that won’t mean more major layoffs in the future and closing entire divisions like Paramount TV, but that seems to be the norm now in the major entertainment merger landscape.
