The Town with Matthew Belloni: Paramount Now Belongs to David Ellison. What Will He Do With It?
Released on July 28, 2025

Introduction

In this insightful episode of The Town with Matthew Belloni, host Matt Bellany delves deep into the recent landmark acquisition of Paramount by David Ellison's Skydance Media. Joined by Lucas Shaw from Bloomberg, the discussion unpacks the implications of this $8 billion deal, exploring the future trajectory of Paramount, its streaming strategy, potential asset sales, and the anticipated changes within CBS News.

Paramount Acquisition Overview

The episode opens with Matt Bellany addressing the culmination of a year-long process: the Federal Communications Commission (FCC) has finally approved the transfer of the CBS broadcast license, greenlighting David Ellison's acquisition of Paramount. This deal not only encompasses the Paramount movie studio but also includes CBS and various cable channels.

• Matt Bellany (01:25): “This is what getting made and why, who is winning and losing, and what people in show business are actually talking about.”

The approval was contingent upon Paramount agreeing to discontinue its Diversity, Equity, and Inclusion (DEI) programs and implementing a CBS News ombudsman to monitor political bias. With the deal set to close by August 7th, Bellany sets the stage for a comprehensive analysis of the expected changes under Ellison's leadership.

Streaming Strategy: Merging Platforms and Future Plans

A significant portion of the discussion centers on Paramount's streaming strategy post-acquisition. Both Bellany and Shaw ponder whether Paramount will merge its streaming services, Paramount+ and Pluto TV, to create a unified platform.

• Lucas Shaw (05:14): “They have a deal with Oracle that they have announced.”

While there's speculation about integrating these platforms to streamline services—similar to Amazon's approach with Prime Video and Freevee—Shaw expresses skepticism about a complete merger due to potential customer loss and integration costs.

• Matt Bellany (06:31): “Like, Amazon Prime Video had a separate fast service in Freevee and they had IMDb TV previously and they have now integrated that into Prime Video as one service.”

The conversation also touches upon the uncertainty surrounding the actual technological advancements Paramount intends to implement, despite their rumored partnership with Oracle.

Asset Management: What Will Be Sold or Retained?

The acquisition raises questions about which of Paramount's assets will remain under the new ownership and which might be divested. Shaw and Bellany discuss the potential sale of cable networks like BET, Comedy Central, and MTV. While Comedy Central and BET hold significant brand value, MTV's relevance seems diminished.

• Lucas Shaw (13:32): “They still have some international media assets that they could sell if they wanted to.”

Bellany speculates on the possibility of selling individual cable networks to interested buyers rather than bundling them, which might not yield substantial value.

CBS News and the Introduction of an Ombudsman

One of the FCC's mandates for approving the deal was the introduction of a CBS News ombudsman to oversee and report on potential biases within the news division. The hosts critically assess the practicality and potential impact of this role.

• Matt Bellany (17:42): “My next question, what the hell is a CBS News ombudsman going to do?”

Shaw highlights the ambiguity surrounding the ombudsman's authority and effectiveness, questioning to whom they will report and how their findings will influence CBS News' operations.

• Lucas Shaw (18:22): “The problem is to whom is the Ombudsman going to report?”

The discussion underscores concerns about possible tensions between the new ownership and the existing journalistic integrity of CBS News, especially with iconic programs like 60 Minutes at stake.

Revitalizing the Movie Studio: Ensuring Relevance and Profitability

Turning to Paramount's film division, Bellany and Shaw explore the challenges and opportunities that lie ahead in revitalizing the studio's relevance in a competitive market.

• Lucas Shaw (21:47): “Can your movie studio be relevant again?”

Paramount has struggled with consistently high-grossing releases compared to industry giants like Disney. Ellison's deep-rooted passion for movies suggests a potential pivot towards acquiring more intellectual properties (IPs) and forging strong relationships with top filmmakers to bolster the studio's portfolio.

• Matt Bellany (22:35): “They need to make this movie studio more competitive with its peers just in terms of the annual performance.”

The conversation also touches upon Ellison's previous involvement in movie financing and the necessity for Paramount to invest significantly to compete effectively.

Talent Acquisition and Strategic Partnerships

A critical element for Paramount's future success lies in securing big talent deals. The hosts examine potential strategies, drawing parallels with Warner Brothers' approach under David Zaslav.

• Matt Bellany (24:16): “They are doing a big deal with Will Smith and his company to make movies for Paramount.”

Such partnerships not only bring star power but also signal Paramount's intent to be a major player in the film industry. However, Shaw raises concerns about potential reputational risks, especially in the wake of controversies surrounding high-profile talents.

• Lucas Shaw (25:09): “They have to figure out if there's a way.”

Additionally, the relationship between Ellison and major talent agencies like CAA and WME could play a pivotal role in shaping Paramount's talent acquisition and project development strategies.

Organizational Structure and Leadership Dynamics

The new leadership structure under Ellison and his deputy Jeff Shell is another focal point of the discussion. Bellany expresses uncertainty about the reporting lines and decision-making processes, especially with key executives like Cindy Holland in charge of the streaming division.

• Matt Bellany (28:00): “They have positioned this as the same as Michael Eisner and Frank Wells.”

Shaw compares the new leadership model to historical precedents, questioning its long-term stability and effectiveness in navigating the complexities of the modern media landscape.

Audience Engagement: Happy Gilmore 2 and Netflix Views

Shifting gears, the episode concludes with a light-hearted discussion about the anticipated release of Happy Gilmore 2 on Netflix. Hosts and guests speculate on its potential performance compared to existing top-viewed Netflix films.

• Lucas Shaw (31:39): “I think it'll beat that because Sandler's a bigger global star at this point.”

While this segment offers a playful respite, it also subtly underscores the importance of strategic content offerings in bolstering Paramount's streaming presence.

Conclusion

Matt Bellany wraps up the episode by reflecting on the multifaceted challenges and opportunities that lie ahead for Paramount under David Ellison's stewardship. From redefining streaming strategies and managing asset portfolios to navigating the intricate dynamics of CBS News and revitalizing the movie studio, the acquisition marks a significant turning point for the media giant. As Paramount embarks on this new chapter, industry watchers remain keenly interested in how Ellison will steer the company towards sustained relevance and profitability in an ever-evolving entertainment landscape.

This summary is based on the transcript of the podcast episode released on July 28, 2025.