CBS in Recovery Amid Skydance’s Paramount Acquisition
As the prestigious Emmy Awards beckon, esteemed network CBS is in a phase of recuperation. The organization found itself embroiled in a whirlpool of legal battles and public scrutiny as Skydance Media navigated its complicated acquisition of CBS’s parent company, Paramount Global. With the contentious tussle involving President Donald Trump and the Federal Communications Commission over CBS News’ ’60 Minutes’ put to rest, the onus of executing and broadcasting the live Emmy event on September 14 lies with CBS who is facing the additional challenge of becoming acquainted with their first change of ownership in a quarter of a century.
While Skydance’s acquisition of Paramount (effective from Aug. 7) is relatively recent, employees of CBS and Paramount have been quick to notice the fresh perspective and new approach brought on board by David Ellison. A meaningful departure from the Redstone era, this is seen as a breath of fresh air by many executives and employees at CBS who can finally let their guards down. Conversations with insiders at CBS, CBS Studios, and the newly formed Paramount TV Studios have spotlighted a recurring theme of tentative positivity.
As one company insider astutely pointed out: ‘Given how poorly things had been going, there’s only one direction we can move from here: up.’ The broad vision outlining CBS’s position in the rapidly evolving TV marketplace is yet to be shared by both Ellison and Paramount’s president, Jeff Shell. Skydance’s takeover of Paramount Global comes at a time when the entire pay-TV sector is experiencing a significant upheaval.
CBS, having been a fundamental part of American TV, requires a strategic plan to navigate its core business sectors – broadcast network, studio operations, and areas like news, sports and, local TV – in the era of streaming. Paramount, under its new leadership, is expected to implement substantial changes in the coming weeks, including layoffs that might impact more than 2,000 personnel.
The Ellison-led management had assured investors of achieving $2 billion in savings following the deal’s conclusion. The implications these decisions will have on CBS will have a far-reaching impact, providing crucial insight into its place and future in the Paramount setup. Despite experiencing turbulence in the past few years, CBS has successfully unveiled several new scripted series attracting audience to both the network and its streaming platform.
The discontinuation of ‘The Late Show With Stephen Colbert’ had been another setback. Regular spates of layoffs have also left a heavy impact. The persistent unpredictability regarding CBS’s probable sale left its employees on tenterhooks. However, despite all these challenges, CBS managed to launch some of the highest-rated scripted shows on television, such as ‘Tracker,’ ‘Fire Country,’ ‘NCIS,’ ‘Matlock,’ ‘FBI,’ ‘Ghosts,’ and ‘Georgie & Mandy’s First Marriage.’ Their stronghold on reality TV was maintained with ‘Survivor’ and ‘The Amazing Race,’ all of which are set to return in the upcoming television season.
Following the merger, the management structure was reorganized to form two primary TV production departments – CBS Studios, headed by long-serving president David Stapf, and Paramount Television Studios, led by Skydance veteran Matt Thunell. CBS Studios will mainly focus on developing content for broadcast while also maintaining a presence in the booming streaming ecosystem.
As the merged entity moves forward, Skydance and Paramount will need to navigate a host of decisions relating to workflows and personnel. The new enterprise’s commitment to the integral business of CBS, especially in areas like local weather reporting, will be significant. A testament to this commitment can be seen in the CBS-owned stations KCAL-TV and KCBS-TV Los Angeles launching a state-of-the-art VR/AR studio for weather coverage. This innovative move signals their intent to leverage technology to bolster the value of CBS’s local TV stations.
One month into the Skydance era, CBS seems to be radiating a more positive energy and showcasing a brighter outlook. Ellison is also making bold strides to acquire rights and transform enterprises into feature films – a clear indication of his dedication to foster the growth of the network.