Paramount CEO David Ellison Downplays Warner Bros. Discovery Deal, Highlights Innovation, Streaming Strategy & Tech Ambition

Paramount Skydance CEO David Ellison has downplayed the company’s need to acquire Warner Bros. Discovery (WBD), signaling a major strategic pivot. During Paramount’s latest earnings call, Ellison stressed a “build versus buy” approach — focusing on innovation, disciplined growth, and long-term shareholder value over high-risk acquisitions.

“There’s no must-have for us. We really look at this as buy-versus-build, and we absolutely have the ability to build to get to where we want to go,” Ellison said during the analyst call.

Paramount’s Strategy: Build, Don’t Chase

Ellison’s comments suggest a shift from the merger-heavy mindset that has dominated Hollywood in recent years.

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Key takeaways:

  • Paramount believes it can achieve streaming goals and long-term value through in-house development.
  • The company is taking a disciplined approach to mergers and acquisitions, only pursuing deals that accelerate innovation or profitability.
  • Paramount Skydance’s focus is now on efficiency, enterprise value, and sustainable cash flow rather than aggressive expansion.

This positions Paramount Skydance as a measured, tech-forward competitor in the streaming and entertainment industry, contrasting sharply with the acquisition-driven strategies of rivals.

Technology as Paramount’s “Core Competency”

Ellison, son of Oracle co-founder Larry Ellison, brings Silicon Valley DNA into Hollywood. His goal: make technology Paramount’s core strength.

“Our goal is to accelerate innovation by making technology the core competency of our company,” Ellison said.
“Technology at Paramount is not and never will be a replacement for human creativity — it’s a powerful multiplier.”

This strategy aligns with how major streaming players like Netflix, Disney, and Amazon are investing in smarter recommendation systems, AI-assisted production, and scalable global streaming infrastructure.

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No Spin-Offs for MTV, Nickelodeon, or Comedy Central

Amid rumors of asset sales, Paramount president Jeff Shell confirmed that the company will retain its cable networks, including MTV, Nickelodeon, and Comedy Central.

“We’re not going to spin off cable assets,” Shell clarified. “When companies are standalone, they can focus on driving the value of the brands they have — we’ll do that within our company.”

This decision ensures that Paramount continues leveraging its linear TV cash flow while building its streaming business (Paramount+) — a hybrid strategy to stabilize revenue during the digital transition.

Strategic Divestments and Focused Investments

Paramount has divested from non-core TV assets in Latin America, including Telefe (Argentina) and Chilevisión (Chile).
The company’s rationale is simple: focus on core growth regions and streaming expansion rather than scattered global investments.

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“We have enough to do and invest in without putting money into things that aren’t core to getting us to global streaming scale,” Shell said.

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UFC Rights Deal Strengthens Paramount+ and CBS

Another major highlight was Paramount’s new $7.7 billion partnership with the UFC, which will bring year-round sports content to CBS and Paramount+.

Shell described the deal as “perfect for Paramount’s content calendar,” helping reduce seasonal churn as subscribers stay engaged beyond the NFL and NCAA seasons.

“If you were going to design a sport for us, UFC is perfect in so many ways,” Shell said.

This move positions Paramount+ as a sports streaming contender, capitalizing on live event engagement — a proven churn-killer in the streaming world.

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What’s Next for Paramount Skydance?

With restructuring charges of $500 million planned for Q4, Paramount Skydance is clearly undergoing a deep operational transformation.
The focus is on:
Strengthening its tech infrastructure
Streamlining operations for efficiency and innovation
Positioning itself as Hollywood’s most technologically capable media company

In an era where media and technology are merging, Ellison’s approach could redefine how legacy studios evolve to stay relevant against streaming giants and tech disruptors.

Industry Implications

Paramount’s “build, don’t buy” philosophy could influence how other media giants navigate consolidation pressure.

Why this matters:

  • Hollywood M&A fatigue: After years of mega-mergers (Disney-Fox, Warner-Discovery), studios are turning inward to innovate.
  • Tech-first mindset: Media survival now depends on technology, data, and AI as much as on content.
  • Hybrid model: Paramount’s refusal to sell its cable networks signals a shift toward balance, not abandonment of traditional platforms.

Final Takeaway

David Ellison’s remarks signal a new era for Paramount Skydance — one defined by discipline, digital innovation, and creative empowerment.
Rather than chasing an expensive merger, Paramount is building its own path — one that combines Hollywood storytelling with Silicon Valley precision.