Entertainment production company Skydance Media, in a successful bid for global media group Paramount, the owner of the 10 network in Australia, plans more than $US2 billion of "cost efficiencies" in a new merged entity.
In a presentation to investors, Paramount and Skydance said the merger between the two companies meant significant opportunities for value creation across the enterprise following a comprehensive review and reframing of the legacy business.
With one of five priorities outlined being to reorganise and restructure business to prioritise cash flow generation, Paramount and Skydance said that executing this plan will "meaningfully change the profitability of New Paramount and enable more investment in growth areas".
The group is expecting accelerated delivery of savings (50%+ delivered by Year 1), with the run-rate cost efficiencies representing about 7% of costs in New Paramount.
Incoming New Paramount CEO David Ellison, the son of billionaire software pioneer Larry Ellison, said it is essential for the company to be able to "expand its technology prowess, to be both a media and technology enterprise".
Ellison told investors he would work to improve the algorithmic recommendation engines that streaming platform Paramount+ uses, as well as upgrading the advertising technology to give marketers more information about audiences.
The other three priorities Paramount outlined in its presentation were: unifying marquee rights and renewing franchise management; aligning ownership and strengthening the balance sheet; and installing a management with proven track record and deep entertainment and technology expertise.
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