Skydance Targets $2 Billion-Plus in Cuts After Paramount Merger

variety.com:

Brian Steinberg Senior TV Editor To help Paramount Global to grow, its new owner needs to make cuts. Skydance executives who are set to take over the owner of CBS, Nickelodeon and MTV have identified at least $2 billion in cost cuts that can be made at the company, much of it from its linear media operations, according to Jeff Shell, who is slated to be named president of the new entity.

Skydance and Shari Redstone, Paramount’s current controlling shareholder, struck a deal Sunday that will have the former take over National Amusements, Redstone’s investment vehicle, and inject capital into Paramount.

Executives believe in the potential for linear media, said Shell, but need to make changes to wring cash flow. The cost cuts,, targeted with the help of consultants at Bain & Co., can be made “quickly,” Shell said. “Linear is going to keep declining,” he added during a call Monday with investors.

Managed properly, he said, “I personally think the linear business” will be strong for years to come. “We don’t think it’s going to worsen, but we don’t think it’s going to get better either.” David Ellison, the Skydance chief who will become the CEO of a “new” Paramount, put a spotlight on his plan to boost the media conglomerate with content from his entity, which controls certain rights to top Paramount franchises like “Top Gun” and “Mission: Impossible.” He envisioned a new company that combined Skydance’s animation business with that of Nickelodeon, and CBS Sports with Skydance’s sports documentary division.