Paramount Television Studios Shut Down After 11 Years
Paramount Television Studios (PTVS) has ceased operations after 11 years, marking a significant cost-cutting measure by Paramount Global in anticipation of its merger with Skydance Media. This closure, announced alongside layoffs affecting 15% of the US-based workforce (approximately 2,000 positions), reflects the broader challenges facing linear television and the ongoing industry-wide transition.
The decision to shut down PTVS follows previous cost-cutting efforts earlier this year, with Paramount Global seeking to reduce expenses by $500 million. The move is likely influenced by anticipated synergies with Skydance Media, which possesses its own television division and has collaborated with PTVS on successful series like Reacher and Tom Clancy’s Jack Ryan.
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PTVS President Nicole Clemens, along with an estimated 20 to 30 staff members, will be departing the company. This consolidation was somewhat anticipated following the integration of PTVS with CBS Studios under the leadership of George Cheeks. All existing series and projects under development will be transferred to CBS Studios.
Beyond the aforementioned hits, PTVS boasts a portfolio of notable productions including 13 Reasons Why, The Alienist, and Time Bandits. Several upcoming series, such as Cross, Before, and Murderbot, will now continue under the CBS Studios banner. In a memo to staff, Clemens acknowledged the challenging environment facing the industry, highlighting the formative experience of leading the studio.
The broader layoffs at Paramount Global will occur in three phases, concluding by the end of the year, with 90% expected to be completed by September. These reductions will impact various departments, including marketing and communications, finance, legal, technology, and other support functions. This restructuring underscores Paramount’s efforts to adapt to evolving industry dynamics and strengthen its position for future growth. A memo from the co-CEOs emphasized the need for these changes to navigate the industry’s ongoing transformation.
The $500 million in cost savings contributes to the larger $2 billion target identified by Skydance Media, positioning the company for a potential acquisition of Paramount Global. The transaction is projected to finalize in the first half of 2025, pending customary closing conditions and regulatory approvals. A “go-shop” period, allowing for consideration of alternative bids, concludes on August 21st. While Sony Pictures and Apollo had previously expressed interest, Sony Group has since withdrawn from pursuing a bid.
