David Ellison Takes Helm at Paramount Skydance Amid Tech-Media Ambitions

On August 4, 2025, Skydance Media CEO David Ellison was named chairman and chief executive of Paramount Skydance Corporation, formed through an $8.4 billion merger with Paramount Global, set to finalize by August 7. The deal unites Skydance, known for Top Gun: Maverick, with Paramount’s storied assets, including CBS, Paramount Pictures, and Nickelodeon. Backed by the Ellison family’s Oracle-driven tech wealth and RedBird Capital Partners, 42-year-old David Ellison aims to reposition Paramount as a tech-media leader to challenge Netflix and Amazon. However, the merger’s journey through regulatory challenges and a CBS News controversy underscores the high stakes of this transformation.

Reinventing Paramount with Technology

Ellison, a filmmaker inspired by Steve Jobs, envisions Paramount Skydance as a blend of creative storytelling and cutting-edge technology. His strategy focuses on revitalizing Paramount+, which struggles against competitors, by improving algorithmic recommendations and ad tech to retain subscribers. Skydance’s use of Oracle’s cloud technology for projects like Spellbound and its gaming ventures, such as Marvel 1943: Rise of Hydra, signals a push into AI-driven animation and interactive entertainment. The new company is organized into three divisions: studios (Paramount Pictures and Skydance’s animation/gaming), direct-to-consumer (Paramount+), and TV media (CBS, MTV, Nickelodeon). Jeff Shell, former NBCUniversal CEO, joins as president, while interim Paramount CEO Chris McCarthy departs post-merger. The Ellison family holds significant control—David with 50% voting rights, Larry Ellison with 27.5%—while RedBird Capital owns 22.5%, per FCC filings. Paramount Global has faced a declining cable business, high debt, and a weak streaming presence. Shari Redstone, controlling Paramount via National Amusements, endorsed Ellison’s vision after years of resisting a sale, citing Skydance’s resources to address these issues. Ellison’s challenge is managing Paramount’s 18,000 employees, compared to Skydance’s 1,300, with limited experience in broadcast or streaming operations.

Regulatory Scrutiny and CBS News Challenges

The merger endured a 250-day FCC review, extended by a lawsuit from former President Donald Trump against CBS News, alleging deceptive editing of a 60 Minutes interview with Kamala Harris in 2024. Paramount settled for $16 million in July 2025, directing funds to Trump’s presidential library—a move critics labeled as a tactic to secure FCC approval. Senate Democrats raised concerns about potential anti-bribery law violations, intensifying scrutiny. FCC Chairman Brendan Carr, after meeting Ellison, secured commitments including an ombudsman to oversee CBS News for two years and the elimination of diversity, equity, and inclusion (DEI) programs. The FCC approved the deal 2-1, with Democrat Anna Gomez dissenting, citing risks to independence.

The CBS News controversy is a focal point. The ombudsman and DEI rollback have raised fears of editorial interference, particularly after the 60 Minutes settlement. The cancellation of The Late Show with Stephen Colbert in May 2026, framed as a financial decision, has sparked speculation of political motives, though no direct evidence supports this. Ellison must maintain CBS’s reputation while navigating a polarized media landscape. The merger aligns with industry trends, as seen in Google’s utility deals to manage AI-driven energy demands, reflecting how tech giants address resource constraints. Ellison’s Oracle-backed expertise could streamline production, but balancing innovation with Paramount’s legacy is critical in a consolidating industry.

Paramount Skydance’s success hinges on Ellison’s ability to revive Paramount+ and stabilize CBS News while addressing financial and regulatory challenges. His tech-driven approach could redefine Hollywood, but failure risks further eroding Paramount’s legacy. As the August 7 closing nears, Ellison’s leadership will determine whether this merger marks a new era or a costly misstep.