Paramount promises to cut $500 million from budget as merger looms

Paramount is promising to cut half a billion dollars from its budget as it works to secure a mega-merger with media conglomerate Skydance.

The company’s leadership said during a presentation to investors this week that the planned $500 million in near-term cost savings will “more closely align our non-content asset ratios with our peers.”

It also promised to reset its streaming strategy, which it has previously said it plans to be profitable on by the end of 2025.

Paramount, which owns major news and entertainment brands like CBS, MTV and Comedy Central, is reportedly close to a sale to Skydance Media, an agreement that would make the conglomerates one of the largest in the world.

The two sides this week reached a sticking point, however, over who would pay for any potential lawsuit from investors sparked by a deal, The New York Times reported, noting an agreement could still fall through.

Paramount was recently hit with a downgrade of its credit rating by the S&P amid concerns over its debt status and experienced a 15 percent decline in its linear broadcast advertising revenue during the fourth quarter of 2023.