Published: August 15, 2024

Why Paramount Global gave up its TV division

By Movieguide® Contributor

Paramount Global will close its television series division, Paramount Television Studios, to cut costs by $2 billion.

“This has been a challenging and transformative time for the entire industry, and unfortunately our studio is not immune,” said Nicole Clemens, president of the division. The studio “has overcome seemingly insurmountable obstacles through a combination of strength, determination and unwavering commitment.”

“We have overcome these challenges with incredible resilience, creativity and passion for what we do, and I couldn’t be more proud of our team. We have also had the privilege of working with some of the industry’s most brilliant creative talent to tell incredible stories from around the world that entertain and shape culture,” she continued.

The company laid off around 800 employees in February and all ongoing projects will be moved to CBS Studios.

With Paramount Television Studios, Paramount ventured into television production for the second time.

The other division “was built on the Desilu production studio founded by Lucille Ball and Desi Arnaz. That studio, which produced TV classics such as I LOVE LUCY and STAR TREK, eventually became the center of Paramount Studios after its acquisition by Gulf + Western and was acquired by CBS in 2005 after its spin-off from the company formerly known as Viacom Inc.,” Variety reported.

The company produced THE OFFER, the series THE SPIDERWICK CHRONICLES and TIME BANDITS.

“I want to thank PTVS President Nicole Clemens and the talented team she has built for the many unique hits they have produced,” said George Cheeks, Co-CEO of Paramount Global. “Under Nicole’s leadership, this studio has consistently outperformed by attracting top storytellers and stars to create world-class series. I want to thank every PTVS employee for creating a slate of shows that have propelled Paramount into the streaming era.”

He continued: “In addition to PTVS, members of CBS teams will also be leaving the company. These are valued colleagues whom we admire and respect and whose talents have contributed to the leadership position we hold today. I would like to express my deepest gratitude to them for their contributions, hard work and dedication.”

Paramount’s goal is to cut costs by $2 billion, and with the elimination of this latest division, $500 million is now on the cards.

Movieguide® reported last month on Paramount’s financial difficulties and the merger with Skydance:

Following the Skydance Media-Paramount merger announcement, the company’s stock price soared and then fell, highlighting Wall Street’s concerns about what the deal means for the studio’s future.

“With a split of the company off the table, the investment debate is simplified: Can Paramount invest profitably in direct-to-consumer (DTC)? Are forecasts low enough,” wrote Peter Supino, an analyst at Wolfe Research, in a report downgrading the stock to “underperform.” “That’s why we are cautious and negative.”

While Supino does not believe that a turnaround of Skydance can save the struggling company, which has posted losses totaling $4.5 billion since 2020, others believe Skydance can restore the company and re-establish Paramount as a top-tier studio.

“At a high level, the new leadership’s strategic focus on content creation, technology investments and financial discipline is sensible, and we believe Skydance’s leadership is capable of driving creative and operational improvements at the asset,” said Guggenheim Securities analyst Michael Morris, who maintains a “buy” rating on the stock. “However, concrete details on key topics such as the future structure of the streaming service, management of the portfolio of linear network assets and expanded use of technology to drive growth are still being developed.”

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