Gerry Cardinale: Paramount Investment Strategy
Skydance’s David Ellison: Storytelling first, Tech Second, adn Why Independence is Key for News
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David Ellison, CEO of Skydance Media, is making a bold statement about the future of entertainment and news. It’s not about the latest gadgets or algorithms, he insists, but about empowering storytellers and respecting the core principles of journalistic integrity.As Skydance navigates a changing media landscape – including a recent deal with Paramount – Ellison’s vision prioritizes creative talent and financial independence above all else.
Skydance Prioritizes Storytelling Over Technology
Ellison is clear about his company’s core philosophy: technology is an enabler, not the driving force. “The thing that has been really problematic from my perspective is people thinking that technology is something to be feared, or that it’s the center,” he explained. “It is indeed not. The artists and the filmmakers that we work with are first, second, third, fourth, fifth, on our priority list.We are storytelling companies first.”
However, he acknowledges the crucial role technology plays in supporting that storytelling. “If you don’t actually have the appropriate technology to support the function of that storytelling… It’s common,” he said. skydance aims to be the partner of choice for creatives, offering not just financial backing but also cutting-edge tools. “What we want to do is be the place that supports the most talented filmmakers” or creatives, but “also doesn’t run away from technology – or runs towards it.” This approach positions Skydance as a facilitator, providing the means for artists to realize their visions without being dictated to by technological limitations.
Skydance’s acquisition of a majority stake in Paramount Global has already sparked questions about the future of its content lineup. The company faces immediate decisions, such as finding a replacement for Stephen Colbert’s “Late Show” when he steps down next May. George Cheeks, chair of paramount’s TV operations, confirmed there isn’t a concept ready to go, but defended the decision to end the show given declining advertising revenue. “We love the show,” Cheeks said, “The economics made it a challenge for us to keep going.”
This situation highlights the pressures facing traditional media companies and the need for strategic financial decisions. Skydance’s involvement signals a willingness to make tough choices to ensure long-term viability.
The Importance of Independence in News: A Lesson from the Trump Lawsuit
A significant aspect of the Paramount deal involves CBS News and “60 Minutes.” Concerns have been raised about potential interference following Paramount’s settlement of a lawsuit brought by former President Donald Trump against the newsmagazine. However, Skydance’s johnathan Cardinale offered a firm stance on this issue.
Cardinale cautioned against acquiring news organizations with the intention of influencing their coverage. “don’t buy into a news organization, whether it’s broadcast or print, if you want to influence it.That’s just bad buisness,” he stated.He emphasized that the value of a news organization lies in its “independence and objectivity.” Attempting to control the narrative, he argues, ”kills the investment thesis.” “There’s no way we’re going to try to influence it. By doing that,you kill the investment thesis. It’s that simple.”
This commitment to journalistic independence is a cornerstone of Skydance’s approach, recognizing that credibility is paramount for any news organization to thrive.
Leveraging Experience and Breaking Down Traditional Media Models
Cardinale believes that traditional media executives possess invaluable expertise in identifying prosperous content. However, he stresses the need for a fresh perspective and a willingness to disrupt established practices.
“I don’t think the Silicon Valley guys should own content production,” he said. “I think it’s the guys that have been around for 113 years.” But simply maintaining the status quo isn’t enough.”All you gotta do, though, is just don’t buy something and sit there and think it’s going to take care of itself. You gotta get under it, you gotta break it apart.”
This suggests a strategy of revitalizing existing media properties through innovation and a more dynamic approach to content creation and distribution. Skydance’s vision isn’t about replacing traditional media expertise, but about augmenting it with a willingness to challenge conventions and embrace change.