Paramount Television Studios to Shut Down Due to 'Significant Changes' in TV Marketplace

Paramount Television Studios will cease operations by the end of the week, impacting about 20-30 individuals. The move is part of a long-term strategic plan being carried out by co-CEOs Brian Robbins, George Cheeks and Chris McCarthy.

Going forward, all current PTVS series and development projects — such as Prime Video's "Cross" and Apple TV+'s "Before" and "Murderbot" — will transition to CBS Studios.

"To be clear, this is not a decision based on how PTVS performed. This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company," Cheeks wrote in an internal memo to staff on Tuesday. "I want to thank PTVS president Nicole Clemens and the talented team she built for the many signature hits they produced. 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."

In her own memo to staff, Clemens pointed out that it has been a "challenging and transformative time for the entire industry, and sadly, our studio is not immune." She also highlighted Paramount TV Studios projects like "13 Reasons Why," "The Offer," "Defending Jacob," "The Alienist," "The Haunting of Hill House," "Station Eleven," "Time Bandits," "Tom Clancy's Jack Ryan," "Reacher" and "The Spiderwick Chronicles" as their accomplishments.

"Over the past 11 years, PTVS 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," she wrote. "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."

"This has been the most formative chapter in my career, and that is mainly due to the remarkable colleagues I have had the honor to lead and learn from on a daily basis. Thank you for supporting me, inspiring me and laughing with me for the last six years — I wouldn't have wanted to be in the trenches with anyone else," Clemens concluded. "I want to thank George Cheeks for his leadership and support through it all. There will undoubtedly be some tears as we move on, but this business is a marathon and I am certain that we will cross paths, if not work together, again."

In addition to the closing of Paramount Television Studios, Cheeks noted that members of CBS teams would also be departing 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," he wrote. "As we move forward, please keep these coworkers in your thoughts as our HR teams and their teammates help support them through this process."

Paramount's layoffs are expected to impact 15% of its total U.S. workforce, with 90% of the cuts expected to be completed by the end of September.

The move, which is part of $500 million in previously announced cost cuts, will focus on "redundant functions and streamlining corporate teams." Previously announced areas that will be impacted include marketing and communications, finance, legal, technology and other support functions.

That $500 million is part of $2 billion in planned cost cuts associated with Skydance Media's pending merger with Paramount Global. The $8 billion deal is slated to close in the third quarter of 2025, subject to regulatory approval and other customary closing conditions. In connection with the $500 million, Paramount expects to incur a restructuring charge of $300-$400 million in the third quarter, with a cash impact that will occur over the next several quarters.

"There is a lot of news to unpack today. I know it's unsettling," Cheeks' memo concluded. "I continue to be impressed and grateful for our teams' ability to stay focused and stick together during this transitional time."

In addition to the cuts, Paramount has hired bankers to help the company with possible asset sales. The company is also in "active discussions" about potential strategic partnerships or joint ventures.

TheWrap exclusively reported that Paramount sold the ComicBook and PopCulture websites to Nashville-based Savage Ventures for an undisclosed amount. Four individuals familiar with the co-CEOs' plans previously told TheWrap that other possible assets that could be put up for sale include Pluto TV, BET, VH1 and the Paramount lot, which would be leased back for the studio's use.

Robbins, McCarthy and Cheeks' plan comes in an effort to accelerate streaming profitability, which Paramount is currently on track to reach domestically in 2025.

During its second quarter of 2024, Paramount's direct-to-consumer division swung to its first-ever streaming profit of $26 million, compared to a loss of $424 million in the year ago period. However, executives warned the DTC segment is expected to generate losses in the third and fourth quarters of the year, due to the timing of content expenses.

Paramount shed 2.8 million subscribers during the quarter for a total of 68.4 million, which primarily reflected the planned exit from a hard bundle agreement in South Korea and elevated churn from a cohort of subscribers that joined for the Super Bowl in the first quarter.

"We expect Paramount+ to return to net subscriber growth in the second half of the year as we benefit from a more consistent cadence of original content," chief financial officer Naveen Chopra said during Paramount's second quarter earnings call last week. "Now that we're beyond the impacts of the strike, we also expect normalized international subscribers for the remainder of the year."

Additionally, Paramount recorded a goodwill impairment charge of $5.98 billion for its cable networks, which resulted from a downward adjustment to the unit's expected cash flows from linear TV affiliates as well as the estimated total company market value indicated by the Skydance merger. The company also took a charge of $15 million to reduce the carrying values of FCC licenses in two markets to their estimated fair values.

Paramount shares have fallen 31% in the past year, 28.5% year to date and 20.8% in the past six months.

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