David Ellison Talks Media Deal Making at Bloomberg Screentime

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Bloomberg Talks 30 min 6 speakers 5 chapters transcribed 2 months ago
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Michelle Hussein 0:00
Hello and welcome. This is The Michelle Hussein Show. I'm Michelle Hussein. I speak with people like Elon Musk. I think I've done enough. And Shonda Rhimes. That's so cute. This will be a place where every weekend you can count on one essential conversation to help make sense of the world. So please join me, listen and subscribe to The Michelle Hussein Show from Bloomberg Weekend, wherever you get your podcasts. You certainly ask interesting questions. Bloomberg Audio Studios.
Scarlett Fu 0:35
Podcasts, radio, news. Let's go live now to L.A., where Lucas is speaking with Paramount Skydance Chairman and CEO David Ellison.
Lucas Shaw 0:43
We've got to start with Paramount. You chased this company for a couple of years, if not longer. If you look at what they own, they have a bunch of cable networks that have been in decline for almost as long as I've been doing my job. They have a movie studio that is by most metrics, the last place movie studio the last few years and a streaming service that in terms of at least engagement is sort of in the third tier. So why were you so interested in it? What do you see in the company that investors and a lot of other potential bidders did not?
David Ellison 1:15
Yeah, no, absolutely. It's a, it's a great question. First, I just want to say we, We couldn't be more excited about the place that we're starting with the asset that we purchased, right? We have 80 million streaming subscribers. We have one of the best, basically, content libraries in existence, which is Paramount and CBS. And I also think you need to distinguish when you talk about the linear business, right? There's cable, which, yes, has been in decline. But if you look at CBS, it actually is a remarkable asset that's been number one in primetime for 17 straight seasons, incredible sports rights, which we're growing, and is still highly... highly profitable cashflow perspective. And I agree with you has not been run in the best manner for the last 15 years.
David Ellison 1:55
And for me, that's all opportunity and opportunity to really reignite the creative content engines, to navigate the transition that's required to really turn Paramount plus into a leader in streaming. And we believe we have the ability to both winning content and also become the most technologically capable media company to effectively navigate this transition. We always looked at, you can look at the music business 10 years ago. We believe we can navigate that. We also really looked at where traditional tech companies were, call it 10, 15 years ago. And there was a period of time where the Microsofts of the world, the Oracles of the world were being disrupted. And those companies that actually disrupted themselves and transitions are now trading at all-time highs.
David Ellison 2:36
We believe we have the opportunity to do the same thing.
Lucas Shaw 2:37
So you talked about streaming. You mentioned the 80 million subscribers earlier. You look at it, those monthly Nielsen reports that people pay a lot of attention to, right? YouTube's at 13% of TV viewing. Netflix is at between eight and nine most months.

Why did David Ellison pursue the Paramount-Skydance acquisition and what assets did he highlight?

Lucas Shaw 2:52
Paramount, when you combine Paramount Plus and Pluto, it sort of sits around 2%. You can correct me if I'm off there, but I think that's about right. So how do you get that up? Forget about 13 or eight, like Disney's in the four or five range. How do you get that up there? And you've talked about content and tech. Can you get specific on those fronts, like what you're going to do?
David Ellison 3:10
Absolutely. So look, one of the things we really believed in, like what I'll say, we're nine weeks in. and i'm really proud of the momentum the team has been able to build over the last nine weeks one of the things we really believe being the first owned and operated studio to my knowledge since actually walt disney built his own shop was that we would have the opportunity to really think long term that means long-term partnerships with talent where you can basically say don't just think about your next movie or your next show we want to build a relationship with you over a decade and actually say we're going to make your next four or five movies your next four or five series and really think long term and invest for long-term growth

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