Why Paramount Global Dropped Its TV Division
By Movieguide® Contributor
Paramount Global will shut down its TV series division, Paramount Television Studios, as it tries to cut costs by $2 billion.
“This has been a challenging and transformative time for the entire industry, and sadly, our studio is not immune,” said Nicole Clemens, the division’s president. The studio “has weathered seemingly insurmountable obstacles through a combination of strength, determination, and unwavering commitment.”
“We met these challenges with incredible resilience, creativity, and passion for what we do, and I could not be prouder of our team. We’ve also had the privilege to collaborate with some of the most brilliant creative talent in the industry to help tell incredible stories seen around the world, entertaining and shaping culture,” she continued.
The company laid off approximately 800 staff members in February, and all projects underway will move to CBS Studios.
Paramount Television Studios was the second time that Paramount ventured into TV production.
The other division was “built on the Desilu production studio founded by Lucille Ball and Desi Arnaz. That studio, which backed such TV treasures as I LOVE LUCY and STAR TREK, eventually became the center of Paramount Studios after an acquisition by Gulf + Western, and would be inherited by CBS after its split from the company formerly known as Viacom Inc. in 2005,” Variety reported.
The company produced THE OFFER, THE SPIDERWICK CHRONICLES series and the TIME BANDITS series.
“I want to thank PTVS President Nicole Clemens and the talented team she built for the many signature hits they produced,” said George Cheeks, the Paramount Global co-CEO. “Under Nicole’s leadership, this studio consistently punched above its weight in attracting top storytellers and stars to create best-in-class series. I want to thank every PTVS employee for shepherding a slate of shows that helped usher Paramount into the streaming era.”
He continued, “In addition to PTVS, there are members of CBS teams who will be leaving the company. These are valued colleagues we admire and respect, whose talents contributed to the leadership position we enjoy today. I want to express my deepest gratitude for their contributions, hard work and dedication.”
Paramount’s goal is cut down $2 billion in costs. With this newest division elimination, it now has $500 million underway.
Movieguide® reported on Paramount’s financial struggles and the merger between it and Skydance last month:
After the merger announcement from Skydance Media and Paramount, the company’s stock price shot up and then fell back down, highlighting Wall Street’s uneasiness about what the deal means for the studio’s future.
“With a breakup of the company off the table, the investment debate simplifies: can Paramount invest profitably in direct-to-consumer (DTC)? Are forecasts low enough,” wrote Wolfe Research analyst Peter Supino in a report where he downgraded the stock to “underperform.” “Respectively, we are cautious and negative.”
While Supino doesn’t believe an overhaul from Skydance can save the struggling company, which has posted losses totaling $4.5 billion since 2020, others believe Skydance can restore the company and reestablish Paramount as a premiere studio.
“At a high level, new leadership’s strategic focus on content creation, technology investments and financial discipline are rational, and we believe Skydance leadership is positioned to drive creative and operational improvements at the asset,” said Guggenheim Securities analyst Michael Morris, who maintained a “buy” rating on the stock. “That said, specific details on key issues include future structure of the streaming service, management of the portfolio of linear network assets, and expanded use of technology to drive growth remain in development.”
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